Panel May Suggest 5% GST On Under-Construction Homes
A ministerial panel tasked with exploring ways to provide GST relief to the real estate sector may suggest lowering tax on under-construction homes to 5 percent, according to a senior government official.
The goods and services tax rate on under-construction affordable homes may be lowered to 3 percent, the official said. But developers won't be allowed to claim input tax credit, the official said.
Currently, under-construction properties are taxed at 12 percent, while affordable housing projects attract 8 percent GST and developers are allowed to claim credit on taxes paid on inputs. Ready-to-move-in properties don't attract GST.
Gujarat Deputy Chief Minister Nitin Patel, the chair of the panel, said the committee will submit its report in two days. The GST Council will then take a final decision.
The GST Council on Jan. 10 suggested setting up the panel to look at ways to ease the burden of real estate sector. The panel's terms of reference included:
- Studying GST rates and problems the residential segment faces under the new indirect tax regime.
- Suggesting a scheme for the sector like the composition scheme—where taxpayers can pay a flat rate without the option of availing input tax credit.
- Examining GST on development rights and their transfer in joint development.
- Examining legality of inclusion or exclusion of land in the composition scheme and suggest a valuation mechanism. Currently, purchase or sale of land doesn't attract GST.
-
Unhedged Position | Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
