The 34th GST Council meeting on Tuesday is expected to take up several issues on priority including the implementation of lower Goods and Services Tax (GST) rates for the real estate sector.

At the meeting, the Council members are expected to take a call on the transition provision and other related issues for the implementation of lower GST rates for the real estate sector.

However, there will be no discussion on issues related directly to rates as it would violate the model code of conduct.

The previous meeting held on February 24 saw the Council slash tax rates for under-construction flats to five per cent and affordable homes to one per cent from April 1, 2019.

GST Council is also expected to give its nod on new rules for determining how much credit builders can use against taxes paid on raw materials and services in settling their final tax liability as the sector shifts to a new tax regime from April 1, sources told news agency PTI.

As of now, 12 per cent GST is applicable with input tax credit on payments made for under-construction property or ready-to-move-in flats where completion certificate is not issued at the time of sale. Meanwhile, the existing tax rate for affordable housing is fixed at 8 per cent.

Besides, the new rules are also expected to specify under what circumstances sale transactions initiated under the current tax regime and concluded after April 1, will be eligible for input tax credit paid on raw materials and services.

GST collections in February failed to touch the Rs 1 lakh crore, forcing the government to lower its GST collection target for the current fiscal to Rs 11.47 lakh crore in the Revised Estimates from 13.71 lakh crore budgeted earlier.