Agenda: Real estate & Lottery issue
The 33rd GST Council meeting was concluded on February 21, 2019 (Wednesday). However, Hon. Finance Minister termed the discussion as inconclusive and then the Hon. Chairman agreed to consider the views of state FMs in the next GST Council meet which has been proposed to be conducted on Sunday (24th Feb. 2019) in Delhi.
In this GST council meet the Deadline for filing GSTR-3B has been announced to be extended by 2 days.
Due to the postponement, the following topics have become the most considered hot topics to be discussed in the next proposed GST Council Meeting on Sunday (24th Feb. 2019) to be held in Delhi.
Hope the 33rd GST council meet will be conducted successfully and all the decisions will be announced with a favorable approach. The Indian Govt. has been taking continuous initiatives to finalize the GST structure more convenient and transparent.
GST Council’s decision on the Real Estate Sector (33rd Council Meet)
This mid-way postponed meeting was re-arranged on 24th February 2019 (Sunday) (exactly on the Pre-scheduled date) in New Delhi.
Under the envision of “Housing for all by 2022”, the 33rd GST Council meeting took some major decisions and recommended to boost the residential segment of the real estate sector in the country.
The council recommended the following major points:
A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities worth ₹ 45 lakh (both for metropolitan and non-metropolitan cities).
Note: Currently six cities including – Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, and Faridabad), Hyderabad, Kolkata, and Mumbai (the whole of MMR) have been categorized as metropolitan cities.
Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI has now been kept exempted only for such residential property on which GST becomes applicable.
Note: Details of this scheme shall be carried out by a committee of officers and shall be approved by the GST Council in a meeting to be called soon especially for this purpose only.
The Council decided that the issue related to the tax rate on lottery needs further discussion in the GoM (Group of Ministers) constituted in this matter.
However, it is good to see here what the advantages of these recommendations are.
Hence, we can see that how the Govt. through its frequent GST Council meetings has been taking the adequate initiative to make the entire GST system more efficient, transparent and beneficial for every stratum of the society.
See the Govt. Notification.