The Group of Ministers (GoM) will meet on September 25 to discuss possible changes to the current tax slabs and rates, including the GST levy on properties12. This meeting is part of the ongoing efforts to streamline and rationalise the GST structure. The GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, will focus on evaluating the impact of changing tax rates on certain goods and services, including real estate.
- Current GST Structure: The GST system in India operates on a four-tier structure, with goods and services taxed at different rates depending on their category. The tax slabs are currently set at 5%, 12%, 18%, and 28%. Essential goods, such as food items, are taxed at the lowest slab of 5%, while luxury and demerit goods, including cars and tobacco products, are taxed at the highest slab of 28%. A cess is also levied on top of the 28% GST for luxury and sin goods.
- Proposed Changes: The GoM is considering merging the 12% and 18% tax slabs, which could simplify the GST structure and potentially reduce the average GST rate. However, this proposal has met resistance from some states, such as West Bengal and Karnataka, who are cautious about making changes to the GST slabs23.
- Impact on Real Estate: The GST levy on properties could be a point of discussion during the GoM meeting. The GST rate for real estate services is currently set at 12%, which is a significant tax burden for the industry. Any changes to this tax slab could have a substantial impact on the real estate sector, affecting property prices and sales volumes.
In conclusion, the GoM meeting on September 25 is a crucial event that could lead to significant changes in the GST structure, including the tax rate on properties. The outcome of this meeting will be closely watched by the real estate industry and the broader public.
9/24/2024 02:36am
