According to The Associated Chambers of Commerce and Industry of India (Assocham), if the Realty is put under the GST, it is required to come with moderate rate and stamp duty, without attaching the cost of housing and construction.
As per Assocham, the union government is surely leaning towards the real estate under the GST but the states are required to be carried on board as there are revenue involvements.
DS Rawat, Assocham secretary general said in a statement that the reports warning about the possibilities that the real estate sector may be put under GST regime excluding stamp duty and other levies such as property tax.
DS Rawat said, “If the sector has to be given a boost, it should be brought under GST along with stamp duty with the rate being moderate and should not add to the cost of the housing or construction.”
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He further said, “That would be a real demand push. In any case, there is no justification for cement still remaining in the 28 percent category.”
The official of Assocham also expressed his concern on whether petroleum, electricity and aerated drinks are required to put within the ambit of GST or not.
Furthermore, he said if we consider an ideal situation, all the sectors like real estate, electricity, petroleum, and aerated drinks, are needed to add to the list of GST applicable tax. But, the requirements have to be corresponded with what is feasible at this instance. Concerning the petroleum sector, the states are surely not on board because they correlate greatly on the revenue from a sellout of diesel and petroleum products.
DS Rawat said, “So, it will take a lot of time and would also depend on the kind of revenue impact the initial period of the GST rollout has shown.”
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In addition, “Ideally from the consumer point of view, if petroleum is brought under GST, the pump prices of petrol and diesel would come down drastically, but that would be asking a bit too much at this point of time. Let’s be real.”
Rawat wants to add electricity under GST as, “merit and essential items attracting the lowest level (rate).”
“For aerated drinks, even if it is brought (under GST), it would be on the demerit list and may even attract additional cess. But for administrative point of view, it makes sense to bring it under GST”, he further said.