JAITLEY PROPOSES TO BRING REAL ESTATE UNDER GST
The Central Government is taking the matter of large scale tax evasion in the real estate sector very seriously, and for this reason the finance ministry is keen to considering bringing this sector under the ambit of GST. Speaking on tax reforms, Finance Minister Arun Jaitley said, “The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I personally believe that there is a strong case to bring real estate into the GST“. Jaitley Proposes to bring Real Estate Under GST.
Expressing his views on the positive impact of one ‘final tax’ to be paid by buyers he further added, “as a result, the final tax paid on the whole product in the GST would almost be negligible”. He has proposed to consider this matter for discussion in the next GST meeting to be held on 9th November in Guwahati. At present 12% GST is levied on construction of a complex, building, civil structure intended for sale to a buyer, wholly or partly. However, land and other immovable property have been exempted from GST. As a direct impact of including real estate under GST, the cost to the end user will greatly come down and so will the instances of tax evasions will come down.