+
No additional GST exemption for long-term land leases: GoM
ECONOMY & POLICY

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

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.

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.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?