New Delhi: Next week GST council meeting will uphold the matter of cut on GST over under-construction properties. On Thursday Finance minister Piyush Goyal confirmed that federal indirect tax body the Goods and Services Tax (GST) Council will consider this ministerial recommendation on the tax cut.
Gujarat deputy chief minister Nitin Patel led ministerial panel has put forward the tax relaxation on under-construction buildings up to 5% excluding credit for tax on raw materials, down from an effective 12% at present with tax credits. Tax reduction on housing from 3% to 8% has also a major role in the meeting agenda- the minister pointed.
2019-20 budget proposal and RBI last week resolutions in effect favour the tax relaxation for middle class where budget emphasised on income tax relief to the middle class, the RBI cut the rate at which it lends to banks by 25 basis points to 6.25%.
The minister has expressed his concern and hope over the GST council meeting resolutions on the tax cut and said ” I hope the consensus arrived at by the GST Council committee will be agreeable to all of you. It will be beneficial to all of you,” at an event organized by the Confederation of Real Estate Developers’ Association of India (CREDAI) in New Delhi.