In Tuesdays meeting in Goa, the Group of Ministers (GoM) discussed the future of the Goods and Services Tax (GST) concerning long-term land leases. The assembly decided that no further exemptions would be provided for these leases by private entities, including sector-specific exemptions for tourism-related activities. The meeting was chaired by Goa's Chief Minister, Pramod Sawant, and took place on Tuesday.
Attendees included notable officials such as Bihar's Deputy Chief Minister Samrat Choudhary, Maharashtra's Women and Child Development Minister Aditi Tatkare, Gujarat's Finance Minister Kanubhai Mohanlal Desai, Kerala's Finance Minister K N Balagopal, Punjab's Finance Minister Harpal Singh Cheema, and Uttar Pradesh's Finance Minister Suresh Kumar Khanna, along with central government GST officials.
Following the meeting, a statement was issued highlighting the extensive discussions on several key issues affecting the real estate sector. The ministers deliberated on the GST exemption related to long-term land leases and tourism, ultimately agreeing that no additional exemptions are necessary. They confirmed that GST will continue to be applied at the prevailing rates.
The meeting also addressed the taxation of construction services provided by cooperative housing societies to their members in new or redevelopment projects. Various perspectives were shared, and it was decided that further discussions would occur after collecting relevant data from the states.
Additionally, the GoM reviewed the current value limit of ₹45 lakh, defining what constitutes an affordable residential apartment in metropolitan regions. They concluded that input from Karnataka, West Bengal, Tamil Nadu, Uttar Pradesh, Maharashtra, and Delhi is essential to reach a consensus on this matter.
The discussion surrounding the valuation of land for calculating the value of construction services when selling apartments was postponed for future examination.
The next GoM meeting is scheduled for October 25, where further decisions will be made.
GST Council’s 54th Meeting Brings Major Reforms in Healthcare, Online Gaming, and Tax Structure
Industry Leaders Welcome GST Council's Rate Cuts and Policy Changes Across Key Sectors