GST Council Recommendations for Real Estate and Related Industries, Real Estate News, ET RealEstate

NEW DELHI: The 47th GST Council convened under the chairmanship of Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs on Wednesday in Chandigarh. The meeting was also attended by the Union Minister of State for Finance, Pankaj Choudhary, in addition to State and Union Territory (UT) Finance Ministers and senior officials from the Ministry of Finance and States/UT.

In particular, the GST Council made the following recommendations regarding changes to GST rates on the supply of goods and services and changes related to GST legislation and procedure:

The GST exemption on the rental of residential accommodation to commercial entities (registered persons) has been removed.

The GST on LED lamps, fixtures and fixtures, their metal printed circuit board has been increased from 12% to 18%.

Hotel accommodation up to Rs. 1000 per day will be taxed at 12%.

Clarification on the GST rate: All fly ash bricks receive the same favor rate, regardless of fly ash content. The fly ash content requirement of 90% to fly ash bricks applies only to fly ash aggregates and not to fly ash bricks. For simplicity, the 90% content condition is omitted.

Clarification regarding the GST rate on services: Allowing choice of land location is part of the long-term land rental offer. Therefore, location fees or preferential location fees (PLC) are part of the consideration charged for the long-term rental of land and should receive the same treatment under the GST.

The sale of land after levelling, laying of drainage pipes, etc. is a sale of land and is not subject to GST.

The council resolved to form a group of ministers to address the various concerns raised by the states with respect to the constitution of the GST Appeals Tribunal and to make recommendations for appropriate amendments to the CGST Act.

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