GST Council deferred the decision on rationalisation of tax rates on real estate and lottery till February 24 .The 33rd meeting of the GST Council, held through video conferencing, also extended the deadline for filing summary sales return GSTR-3BÂ for January till February 22 and till February 28 for Jammu & Kashmir.
During the meeting, opposition-ruled states like Delhi and Kerala demanded that a physical meeting be held to decide on crucial issues like real estate and lottery. The representative from Punjab flagged a technical point relating to land cost being included while deciding on GST rate.
The GoM on real estate sector, headed by Gujarat Deputy Chief Minister Nitin Patel, had suggested cutting GST on under-construction residential properties to 5 per cent without input tax credit (ITC), from 12 per cent, currently and GST to be slashed to 3 per cent from the present 8 per cent on affordable housing segment.
The representative from Bihar suggested that GST on affordable housing segment be brought down to 1 per cent during the council meeting on Wednesday. It was also suggested that if 90 per cent area of a property is used for residential purposes and 10 per cent is used for commercial purpose, it should be treated as residential property for GST purposes.
