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GoM to examine GST tax rate, composition scheme for real estate sector

The panel would also examine the legality of inclusion/exclusion of land or any other ingredient, in composition and suggest valuation mechanism

Press Trust of India

A ministerial panel headed by would look into the possibility of rationalisation of rate in real state sector besides formulating a 

The Council in its recent meeting on January 10 had decided to set up a 7-member Group of Ministers (GoM) to boost under regime.

The Terms of Reference (ToR) of the GoM include suggesting ways for pencilling in a for the sector, a said.

The GoM would also analyse tax rate of GST, including issues/challenges in view of the proposal for shoring up the 

The panel would also examine the legality of inclusion/exclusion of land or any other ingredient, in composition and suggest valuation mechanism.

It would also examine various aspects of GST on Transfer of Development Rights (TDR) and Development Rights in a joint agreement and suitable model, the statement added.

The other ministers in the GoM include of Maharashtra, Karnataka, Kerala, and and Goa Panchayat Minister 

Currently, GST is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

The effective pre-incidence on such housing property was 15-18 per cent.

GST, however, is not levied on buyers of for which completion certificate has been issued at the time of sale.

There have been complaints that builders are not passing on the input tax credit (ITC) benefit to consumers by way of reduction in price of the property after the rollout of GST.

The proposal before the GST Council, headed by and comprising his state counterparts, was to lower GST rate on under-construction properties to 5 per cent. With consensus eluding the proposal, the Council decided to set up a 7-member GoM.

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