Finance Minister Arun Jaitley has reportedly discussed about getting the real estate sector under the ambit of GST in a lecture he delivered at the Harvard University. The discussions are known to be held on November 9 to keep in check tax-evasion.
The tax does not currently apply to alcohol, petroleum products and the real estate sectors, as some states were not in agreement for the same. Jammu and Kashmir, for example, did not agree on including real estate in the GST regime.
Jaitley reportedly believes that real estate is where maximum cash is generated and where maximum tax evasion takes place, making it a strong reason to bring the sector under the GST coverage. In light of this, a discussion will take place next month to reach an agreement.
As per reports, Jaitley is known to be in favour of this move as it would be beneficial for the customers who would only have to pay one tax. Flats under construction are covered in the indirect tax regime but approval of this move would mean that the complete value chain would come under GST, ie, the purchase of land which is currently faced by a stamp duty will instead face GST.