No additional GST exemption for long-term land leases: GoM

27 Sep 2024 CW Team

According to a media statement released after the meeting, various issues related to the real estate sector were discussed. It was noted that the topics concerning GST exemptions on long-term land leases by private entities and tourism-specific exemptions were thoroughly deliberated.

The Group of Ministers reached a unanimous agreement, recommending that no additional exemptions were necessary, and that GST would continue to be levied at applicable rates.

The statement also mentioned discussions on other issues regarding the taxability of construction services provided by co-operative housing societies to their members in new or redevelopment projects. The meeting highlighted that several viewpoints emerged during these discussions, and it was decided that further deliberation was required, pending the acquisition of relevant data from the states.

Additionally, it was determined that the Committee of Officers would investigate these issues further after collecting pertinent information from the states before making a final decision in the next GoM meeting.

When reviewing the value limit of Rs 4.5 million for defining an affordable residential apartment in metropolitan regions, the ministers agreed that input from the states of Karnataka, West Bengal, Tamil Nadu, Uttar Pradesh, Maharashtra, and Delhi was essential to reach a consensus on this matter.

The fourth meeting of the Group of Ministers (GoM) aimed at boosting the real estate sector, held in Goa, resulted in the decision that no further exemptions in Goods and Services Tax (GST) would be granted on long-term leases of land by private entities, nor for sector-specific exemptions such as those for tourism purposes. The meeting, hosted by Goa Chief Minister Pramod Sawant on Tuesday, included various dignitaries such as Bihar Deputy Chief Minister Samrat Choudhary, Maharashtra's Women and Child Development Minister Aditi Tatkare, Gujarat Finance Minister Kanubhai Mohanlal Desai, Kerala Finance Minister K N Balagopal, Punjab Finance Minister Harpal Singh Cheema, Uttar Pradesh Finance Minister Suresh Kumar Khanna, and GST officials from the central government. According to a media statement released after the meeting, various issues related to the real estate sector were discussed. It was noted that the topics concerning GST exemptions on long-term land leases by private entities and tourism-specific exemptions were thoroughly deliberated. The Group of Ministers reached a unanimous agreement, recommending that no additional exemptions were necessary, and that GST would continue to be levied at applicable rates. The statement also mentioned discussions on other issues regarding the taxability of construction services provided by co-operative housing societies to their members in new or redevelopment projects. The meeting highlighted that several viewpoints emerged during these discussions, and it was decided that further deliberation was required, pending the acquisition of relevant data from the states. Additionally, it was determined that the Committee of Officers would investigate these issues further after collecting pertinent information from the states before making a final decision in the next GoM meeting. When reviewing the value limit of Rs 4.5 million for defining an affordable residential apartment in metropolitan regions, the ministers agreed that input from the states of Karnataka, West Bengal, Tamil Nadu, Uttar Pradesh, Maharashtra, and Delhi was essential to reach a consensus on this matter.

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