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New GST rules on real estate defeat the very purpose of the indirect tax

The absence of ITC will generate black money, as there will now be a tendency on the part of builders to pay for inputs such as cement and steel in cash

New GST rules on real estate defeat the very purpose of the indirect tax
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The committees will also look at issues such as transfer of development rights, joint development agreements, lease premium

Indivjal Dhasmana New Delhi
While lowering the goods and  services tax (GST) rates on under-construction houses would give much-needed  relief to the real estate sector, the GST Council's decision to do away with input tax credit  (ITC) will defeat the very purpose of the indirect tax regime.

Also, many of the components of real estate, including stamp duty, leasing, completed or ready-to-move-in houses remain outside the GST domain.

After failing to arrive at a consensus on Thursday, the GST Council on Sunday slashed the GST rate on under-construction houses priced above Rs 45 lakh to 5 per cent from 12 per cent. The new

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First Published: Feb 27 2019 | 12:23 PM IST

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