No decision yet on reducing GST rates on real estate

Home buyers and developers, who were hoping for real estate to be included in the ambit of the GST, will have to wait longer, as the GST Council has decided to form a seven-member group of ministers to examine the same

The GST Council, at its latest meeting on January 10, 2019, decided for form a seven-member group of ministers, to examine the inclusion of real estate and lottery under the Goods and Services Tax (GST), after differences of opinion emerged at the meeting, finance minister Arun Jaitley announced. However, in a bid to give relief to small businesses, the GST Council doubled the exemption limit and raised the threshold for availing the composition scheme.

See also: GST on real estate: How will it impact home buyers and the industry

The GST Council doubled the GST exemption limit to Rs 20 lakhs for the north-eastern states and Rs 40 lakhs for the rest of the country, Jaitley said. The scope of the GST Composition Scheme, under which small traders and businesses pay a small tax, based on turnover rather than value addition, was raised to Rs 1.5 crores from Rs one crore. The twin move would give relief to micro, small and medium enterprises (MSMEs), he said. The council also allowed Kerala to levy a one per cent calamity cess on intra-state sales, for a period of up to two years.

 

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