Responding to Finance Minister Arun Jaitley's proposal of including real estate under the purview of the Goods and Services Tax (GST), DLF CEO Rajiv Talwar has suggested that a comprehensive 12 percent tax rate, inclusive of the price of land must be levied.
"The idea of 'One Nation One Tax' is great, and all glitches are rectifiable. From the real estate perspective, we would suggest that a 12 percent tax be levied, inclusive of land price. This will enable greater simplicity and transparency in taxation, and the buyers would have access to complete payment information," Rajiv told ANI.
Further, he suggested the GST council to move towards a single slab structure of taxation, as there will be a clear distinction between how much is being paid as tax and how much is being generated in terms of input tax credit. Such measures would ensure that one has a guaranteed roof on top of his head, he said.
Echoing a similar stance, Nirala Group CMD Suresh Garg suggested that stamp duty payable on registration be abolished.
"We welcome the move, as under-construction flats are already under the GST net. If payment of stamp duty at registration is abolished, buyers will largely benefit," he said.
Jaitley on Thursday said the issue of bringing real estate under the GST's ambit will be discussed in the next GST Council meeting, to be held on November 9 in Guwahati.
Delivering the 'Annual Mahindra Lecture' on India's tax reforms at the prestigious Harvard University in Washington, Jaitley said 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," he added.
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