In the recent development, the GST Council sanctioned transition plan for the implementation of a new tax structure for housing units.
AB Pandey, Revenue Secretary informed about the development. He also said that reasonable time will be given to the developers for transition in consultation with states.
The meeting was held consciously on the transition provision and for issues regarding the implementation of lower GST rates for the real estate sector.
In the February 24 meeting, the GST council slashed tax rates for under-construction flats in an affordable category to 1 percent. Other than this, the Goods and Service Tax were minimized to 5 percent and this will come into effect from 1st April.
AB Pandey also said that the new tax rates will be compulsory for the new projects from 1st April.
Earlier this month, GST Council received go-ahead nod from the Election Commission for the meeting that is scheduled to take place on 19th March. In the meeting, multiple issues are planned to be taken up for the discussion and the implementation of low Goods and Service tax [GST] in the real estate market will also be discussed.
As per the sources, the meeting will take place via video-conferencing.
The approval from the Election Commission was required as the Code of Conduct came into force on Sunday 10th March. After the go-ahead signal from EC, the GST Council Secretariat sent notice to the States for attending the 34th meeting of the GST Council on March 19, the sources said.
The sources also said that the GST Council meet will focus on the transition provision the issues penetrating to the implementation of lower GST rates for the Indian property market.
Also, the Union Government reduced the GST collection target to Rs. 11.47 lakh crore in the revised estimate from Rs. 13.71 lakh crore.