Maharashtra government opposes GST in real estate

The government of Maharashtra has opposed the inclusion of real estate in Goods and Services Tax and does not want any decision in this matter to be taken in a hurry. The government has argued that a decision should be taken at the GST Council after an in-depth study and after weighing its impact on state finances.

State Finance Minister Sudhir Mungantiwar told DNA he had sent a letter to the Centre on this. Currently, GST rate on under construction real estate projects stands at 18 per cent. GST Council, at its meeting slated for November 9, may consider two rates — five per cent and 12 per cent for low-cost housing and other properties respectively. This apart, the GST Council will also weigh option to lower the GST rate on real estate and subsume the cost of stamp duty and property registration. Some analysts argue that inclusion of entire real estate in GST will be a long drawn process as it may need several legislative changes in the GST Act and amendment to the Constitution.

A senior state finance department official, who did not want to be identified, said the state government is currently looking into the impact of the inclusion …read more