The GoM would also analyse tax rate of GST, including issues/challenges in view of the proposal for shoring up the real estate sector.
The panel would also examine the legality of inclusion/exclusion of land or any other ingredient, in composition and suggest valuation mechanism.
It would also examine various aspects of GST on Transfer of Development Rights (TDR) and Development Rights in a joint agreement and suitable model, the statement added.
Currently, GST is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.
The effective pre-GST tax incidence on such housing property was 15-18 per cent.
GST, however, is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.
There have been complaints that builders are not passing on the input tax credit (ITC) benefit to consumers by way of reduction in price of the property after the rollout of GST.
The proposal before the GST Council, headed by Finance Minister Arun Jaitley and comprising his state counterparts, was to lower GST rate on under-construction properties to 5 per cent. With consensus eluding the proposal, the Council decided to set up a 7-member GoM.