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

iWO(R)K

It is commonly believed that technology is the key differentiator between a smart and an ordinary workspace. While that is true on one level, it isn’t the whole truth. Conceptually, smartness as associated with an office has evolved from technological novelty to holistic sustainability, workplaces that not only perform but also inspire, explains Dikshu Kukreja, Managing Principal, CP Kukreja Architects. “A truly smart workplace is not simply a matter of embedding devices or automated systems; it is about creating an ecosystem that balances digital intelligence, ecological sensiti..

Next Story
Technology

Bentley’s AI-Driven Infrastructure Vision

Kaushik Chakraborty, Senior Vice President, Asia Pacific & Japan, Bentley Systems, shares with PRATAP PADODE, Editor-in-Chief, CW, how Bentley is reshaping infrastructure. Through AI, model-centric workflows and innovation, technology is helping deliver projects faster, greener and more efficiently across regions.How does Bentley’s global strategy ensure its solutions meet diverse infrastructure needs?Bentley’s technology is designed to scale globally. Projects large and small – from a hotel in Udevo to a 350-km highway in Australia – demonstrate that technology is no bar..

Next Story
Equipment

Handling the Bottom Line

In a highly competitive construction environment, efficient material handling is “the silent engine of profitability”, to quote Vaibhav Kulkarni, General Manager Projects, JP Infra Realty. “It’s not just about moving materials from A to B but developing a strategy to minimise touchpoints, reduce waste and maximise spends.”Planning stageBefore investing in material, Kulkarni recommends designing the material flow. “Map the journey of major materials from the delivery point to their final placement,” he recommends. While doing this, “minimise double-handling and identif..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?