Basis a source, to contemplate the multiple issues comprising of the implementation of lower GST rates for the real estate sector, the Election Commission has given the approval for holding the upcoming GST Council meeting on 19th March, where the meeting will be held through Video Conferencing. Ensuing the approval from the Election Commission, the states have received notices for the 34th meeting from the GST Council.
In the preceding meeting of the GST Council, the Council had removed the tax rates for under-construction flats to 5 per cent and affordable homes to 1 per cent which will be effective from 1st April, where now the meeting will be held to talk over the transition provision and related issues for the implementation of lower GST rates for the real estate sector.
At present, the GST for under-construction or ready-to-move-in properties where the CC (Completion Certificate) is not issued at the time for sale is 12 per cent and the existing tax rate for affordable housing units is 8 per cent. The GST collection target for the current fiscal has been lowered by the government to Rs. 11.47 lakh crore in the revised estimates form Rs. 13.71 lakh crore budgeted initially, where the GST Collection target has been fixed at Rs. 13.71 lakh crore for the next fiscal 2019-20.
Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global says, “The real estate sector is really optimistic for the next GST Council meeting to succour to the requirements of the market. The government has already made policies and decisions in favour of the Affordable Housing segment which has given a boost to the sector thereby bringing back the trust and exerting influence on the market.”