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GST Council likely to meet on Feb 20 to discuss cement rate cut

IANS  |  New Delhi 

The is likely to meet on February 20 to discuss a proposal to slash tax on to 18 per cent from 28 per cent and also consider a recommendation of a Group of Ministers (GoM) on housing that advocates 5 per cent GST in under-construction properties and 3 per cent GST for affordable housing.

The had earlier recommended 5 per cent GST without input tax credit on under-construction housing and 3 per cent GST without ITC on affordable housing.

A rate cut in to 18 percent which is long pending will lead to a loss of Rs 13,000 crore annually to the government but with election drawing closer, the Government is keen to ensure the GST cut benefits the end users in terms of lower prices and prices could lead to low housing costs for the middle class.

The proposed GST cut in cement and the report are on the agenda of the meeting on February 20, sources said.

The on housing which will also meet once before the meeting takes place on Feb 20 could also change the definition of affordable housing to accommodate more poor people under 3 per cent tax rate. Currently, affordable houses are defined up to 50 square metres of carpet area which is likely to be increased to 80 square metres to include more people in the category.

Developers and prospective home buyers are expected to gain from this move.

The had demanded a cut in GST to 18 per cent as it would boost infrastructure spending and create jobs while reducing the costs of buying a house.

had earlier said lowering the tax rate on cement was a priority. Cement is the only commodity used by the common man that is taxed at the highest slab.

--IANS

ana/sn/am

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 13 2019. 20:40 IST
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