GST council meeting to take place today with the focus on tax on under-construction homes. There could also be a reduction of tax on cement from 28% to 18%.
New Delhi: In the GST Council meeting today, a decision on reducing the tax rate of under-construction homes and reducing GST on affordable housing made in 30 sqm could be taken. There could also be a reduction in the tax on cement, while the lottery rates are expected to be uniform.
Union Finance Minister Arun Jaitley will preside over the meeting via video conferencing. Apart from this, to increase the real estate sector, the GST Council meeting on Sunday will increase the scope of Affordable Housing.
Up to 45 lakh houses in metro cities can be brought in the Affordable Housing Segment. At present, up to Rs 30 lakhs in the metro cities and up to Rs 25 lakhs in non-metro homes come under Affordable Housing category.
Recommendations on GST: The Ministers recommended 5% GST on the under-construction houses. At present, the rate is 12% on these. GST Council formed a group of Ministers for Real Asset Sector which was headed by Gujarat Chief Minister Nitin Patel.
The Ministers advocated putting a similar GST on the lottery. It can be kept in between 18% or 28% GST. At present, 12% GST is applicable on the state lottery and 28% GST on the lottery run by the state's sanction.
At the GST Council's 33rd meeting on February 20, the decision to change the GST rate on real estate and lottery was postponed until February 24. The council has extended the last date for filing returns for companies for the month of January.
After the 33rd meeting, Jaitley increased the last date for this to 22 February, except in Jammu and Kashmir, in view of the crowd to fill the returns. The deadline for Jammu and Kashmir is extended till 28 February.
Last Updated Feb 24, 2019, 4:46 PM IST