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GST Council to discuss bringing real estate under its ambit3
October, 12th 2017

The issue of bringing real estate under the GST's ambit will be discussed next month, Finance Minister Arun Jaitley said today, as he acknowledged that it is the one sector where maximum amount of tax evasion and cash generation takes place.

The matter will be discussed in the next meeting of the GST Council to be held on November 9 in Guwahati, Jaitley said while delivering the 'Annual Mahindra Lecture' on India's tax reforms at the prestigious Harvard University.

"The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I personally believe that there is a strong case to bring real estate into the GST," Jaitley said.

The Goods and Services Tax (GST) was implemented from July 1 this year. It brings the economy under a uniform tax regime.

"In the next meeting itself, we are addressing one of the problem areas or at least (having) discussion (on) it. Some states want, some do not. There are two views. Therefore, by discussion, we would try to reach one view," he said.

The move would benefit the consumers who will only have to pay one "final tax" on the whole product, Jaitley said.

 
 
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