GoM meeting in Goa: No consensus on GST proposals for real estate sector | Economy & Policy News
A Group of Ministers (GoM) meeting held in Goa on Tuesday could not reach consensus on most proposals regarding the goods and services tax (GST) for the real estate sector, sources said.
The GoM, chaired by Goa Chief Minister Pramod Sawant, deferred the proposal to exempt GST on long-term leases granted to the tourism sector, favouring states that declare tourism as an infrastructure sector to facilitate exemptions, the sources added.
“Around 12 states have given infrastructure status to the tourism sector to enable tax exemptions, although no final decision was made today (Tuesday). We may reconvene to discuss real estate issues again,” said the sources.
Real estate had several major issues that require further details. “However, the GoM has deferred the decision on exempting GST on the redevelopment of buildings in cooperative housing societies on an ownership basis. The panel has also postponed the decision regarding the preferential treatment of free houses allotted to slum dwellers in slum redevelopment projects,” the sources added.
Additionally, the panel has rejected the proposal to exempt GST on service costs and premium fees associated with long-term land leases executed by government institutes.
The meeting concerning GST for the real estate sector concluded without reaching significant agreements. Another meeting on the topic is scheduled in Gujarat on October 25. The panel has postponed the proposal to increase the affordable housing threshold in metro areas from Rs 45 lakh to Rs 75 lakh.
On the second day of the meeting, another GoM will take up rate rationalisation issue and consider the way forward on GST rates and several issues, including the treatment of GST on health and life insurance premiums.
The GoM, to be chaired by Bihar Deputy Chief Minister Samrat Choudhary, includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh Khimsar, and Kerala Finance Minister K N Balagopal.
The GoM will play a crucial role in shaping the agenda for the upcoming 55th GST Council meeting, expected to be held in November. Sources suggest the upcoming meeting will address several urgent issues and priority topics raised in previous sessions.
The 54th GST Council meeting, held in New Delhi on September 9, tasked the GoM with returning with more thorough deliberations. A significant item on the agenda was the potential exemption or reduction of GST rates on health and life insurance premiums.
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Group of Ministers defers proposal to exempt GST on long-term leases to tourism sector -
Flags several major issues in real estate that require further details -
Rejects proposal to exempt GST on service costs and premium fees on long-term land leases -
Postpones proposal to raise affordable housing threshold in metro areas
First Published: Sep 24 2024 | 9:00 PM IST
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