A day after Prime Minister Narendra Modi had said that the Goods and Services Tax (GST) has brought down tax rates in the real estate sector, Finance Minister Piyush Goyal on Thursday said the next GST Council meeting could take some steps to address their issues even as he asked the banks to meet the realty sector on stalled projects in two weeks.
At the industry body CREDAI event in New Delhi, he also advised the realty sector to sell off inventory even in the current pricing about which the realtors complain as being low. Goyal has been asking banks to step up lending to the housing sectors.
The finance minister asked the state-run banks to meet realty sector on stalled projects in two weeks and asked the realtors not to over-leverage the loans and drive away the banks from lending them. SBI chairman Rajnish Kumar was also present in the event.
“I think what the GoM on Housing has decided on the final consensus, I am confident, you will support that and very soon the GST Council meeting has been called for and I am sure the solutions will come out and you all can benefit out of that. Some of you may feel at disadvantage of about 1-2 per cent.
“Here I will seek your support that you accept what the GST Council decides and this is in your interest also. You will be spared of queries from officials over small issues like if you have passed on the input tax credit to the consumers or not, being pushed to the anti-profiteering tribunal. I think that will be the biggest benefit to you all,” he said.
The GST Council meeting is slated for February 20 and is expected to take up and pass these proposals. Under-construction houses currently attract 12 per cent GST and 6 per cent stamp duty and registration.
Addressing the “CREDAI YouthCon 2019”, Modi had said the tax rates on construction materials have also gone down since the implementation of GST regime in 2017.
“GST has eased operations in the real estate sector, for both developers and buyers. Earlier construction sector had to pay 15-18 per cent tax. The total tax levy went above 30 per cent including many other purchases, such as tiles and other components,” Modi said