With a mutual consensus of the Centre and various state governments, finally, GST is expected to be rolled out from July 1, 2017. In this connection, Delhi Deputy Chief Minister Mr. Manish Sisodia has called for bringing in the land and real estate sector under the GST structure.
It is expected that the new GST (Goods and Services Tax) plan will be rolled out in full fledge from July 1, 2017 as the Centre and various states have reach consensus on GST. While all goods and services will come under the new structure of tax, the property and real estate sector have been speculated more than others. Recently, Deputy Chief Minister of Delhi Mr. Manish Sisodia has made a remark that land real estate should be brought within the GST tax regime.
Mr. Sisodia, who is also the Minister of Finance of Delhi said while addressing the “National GST Conclave: One Nation One Tax-Pivotal Tax Reforms”, organised by the PHD Chamber of Commerce and Industry. According to him, “Dual control of GST also defeated its intended objectives and sought more intense consultations on the issue in future GST Council meetings, arguing that the objective of the GST should be consumer and trader-oriented and it should not entirely aim at raising taxation with higher rates.”
Though, it is obvious that reaching to an absolute consensus on including land and real estate within the scope of GST will be an uphill task as it will involve a number of GST Council meetings of all the states. Further on GST, Manish Sisodia said that consumer durables should be taxed at the lowest slab. It would make the new indirect tax regime more consumer friendly. Sosodia said, “Consumer durables such as televisions, mobiles, electric appliances and a host of similar such articles, should not be taxed luxuriously. That is our view and we will continue to articulate them whenever necessary, although the GST tax rates have yet to be finalized.”
Meanwhile, in connection to GST, Confederation of Real Estate Developers’ Associations of India (CREDAI) has revealed that the real estate market is expected to come under a revenue-neutral GST rate and this is a good news for the home buyers. This would not have any adverse impact on property prices in the near future.