New Delhi, Jan 15 (IANS) The Centre on Tuesday constituted a seven-member Group of Ministers (GoM) to look into Goods and Services Tax (GST)-related issues of the real estate sector.
Nitin Patel, the Deputy Chief Minister of Gujarat, would head the GoM which would analyse the tax rate of GST on the under-construction residential properties for boosting the realty segment, a Finance Ministry statement said.
Among the issues concerning the sector, a major subject is the GST rate on under-construction residential properties. There have been demand from many quarters to slash the rate on the segment to 5 per cent from the current 12 per cent.
The members of the GoM are finance ministers of five states — Sudhir Mungantiwar of Maharashtra, Krishna Byre Gowda, Kerala, T.M. Thomas Isaac, Karnataka, Manpreet Singh Badal, Punjab and Rajesh Agarwal of Uttar Pradesh. Goa Minister of Panchayat Mauvin Godinho is also a member.
As per the Ministry, the GoM would “examine and suggest ways for composition scheme or any other scheme, for boosting real estate sector and suggest scheme for transition vis-a-vis introduction of suggested scheme”.
As per the terms of reference, it would also examine various aspects of levy of GST on Transfer of Development Rights (TDR) and Development Rights in a joint development agreement and suitable model.
The GoM would further examine the legality of inclusion or exclusion of land or any other ingredient, in composition and suggest valuation mechanism.
The Union Government appointed Manish Sinha, Joint Secretary (TRU-II), Central Board of Indirect Taxes and Customs, as Secretary to the GoM, the statement said.