GST Council to consider implementation of lower tax rates for realty sector

The all powerful GST Council in its 34th meeting to be held Tuesday is expected to take up various issues including the implementation of lower GST rates for the real estate sector. 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 real estate sector moves to new tax regime from April 1.

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 high-powered GST Council slashed 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.