New Delhi: The 34th meeting of the GST Council, to be held on Tuesday, may bring some cheer for the realty sector as it is anticipated that the council may take up various issues including the implementation of lower GST rates for the real estate sector. The meeting is likely to deliberate only the transition provision and related issues for the implementation of lower GST rates for the real estate sector, sources said, adding, no issues related to rate is in the agenda as the model code of conduct is in force.
In the previous meeting (February 24), the GST Council cut tax rates for under-construction flats to 5 per cent and affordable homes to 1 per cent, effective April 1. The council is expected to give its nod on new rules on how far builders can make use of credit for taxes paid on raw materials and services in settling their final tax liability as the real estate sector moves to a new tax regime from April 1, sources said. The new rules are expected to specify under what circumstances sale transactions initiated in the current tax regime but concluded after April 1, will be eligible for Input Tax Credit on taxes paid on raw materials and services. Currently, GST is levied at 12 per cent with input tax credit on under-construction properties.
