The Election Commission gave a go-ahead nod to the next meeting of the GST Council 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.
According to 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.
Earlier in February, the GST Council met and slashed the tax rates to 5 percent for the under-construction homes and 1 percent for the affordable homes. This discussion will come into effect from 01st April as it will also mark the commencement of the new financial year.
At present, the GST is implied at 12 percent with an input tax credit (ITC) for the payments made for under-construction property or ready-to-move-in flats. The rate is applicable on the purchase of property that doesn’t have a Completion Certificate issued by the concerned authority at the time of sale.
However, the tax rate stands at 8 percent for the purchase of affordable homes.
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.