A panel of ministers has shown a strong favor of reducing the GST on under-construction buildings from 12 percent to 5 percent. Natin Patel, Deputy Chief Minister of Gujrat, set up a meeting with the panel of ministers last month in which the taxation of housing and construction was analyzed. It has been proposed in the meeting that the GST must be lowered. The report will be finalized within a week and it will be presented in front of the GST Council in the next meeting.

The GST rate is currently holding at 12 percent on the under-construction buildings and ready-to-move-in flats. The pre-GST tax on these buildings is 15-18 percent. Several complaints had been made in terms of property prices as the builders are not providing the ITC benefits to the consumers. Thus, the GST Council decided to call a meeting of GoM to look into the GST. The GoM panel includes the finance ministers of Maharashtra, Punjab, Uttar Pradesh, Goa, Kerala, and Karnataka. The state ministers of other states would also take part by sharing their views about the reduction of Goods and Services Tax. The efforts are made to empower the housing market of India.

Source: EconomicTimes