It is not easy to bring real estate under the realm of commodity and service tax (GST).It may take more time than expected. However, in the next month’s meeting in Guwahati, the state finance ministers will discuss on this.Source attached to the G.S.T. council said that in the meeting, it will be discussed that under the new indirect taxes the land should be brought or the stamp duty should be included in it. Apart from this, it can also be considered that both of these GSTs To bring under the Constitution, a constitutional amendment may be required or it can only be done through a change in the relevant laws.
The amendment to the Stamp Duty Act has to be passed in half states: In addition to amending the laws, constitution of two amendments in the two Houses of Parliament will be needed. In case of differences, there will be no provision for the Joint Meeting of the House. At the same time, in this case, in order to amend the Stamp Duty Act, it has to be passed in at least half states. Stamp duty on property is done by Goods and Services Tax There may be a need to amend the constitution to bring it in, because it is a matter of states. However, there is an option to declare the stamp duty to be declared by the states and it should be declared as GST. But they said why the state will do this. In the current situation, the stamp duty can be deducted from the GST. It is unthinkable to include in Sources said that the real estate is Goods and Services Tax All aspects of bringing in will be considered.
Immovable property is not mention in the definition of an object: Sources say that this may require modification because the definition of the object in the constitution has not included the immovable property. ‘Commodities’ is defined under the Commodity Sales Act, 1930, which includes all movable assets including shares, crops etc. In such a way, G.S.T. Under this, it has to be changed to impose an object tax on land. Simultaneously, the registration fee of the stamp duty and property comes under the jurisdiction of the state and if it is also given GST If the Constitution is included in the Constitution, then the constitution will be amended.
Customers’ desire to be real estate included in GST: An officer of the Ministry of Finance said that there are many aspects of it. For example, customers have the desire that real estate should be given GST And stamp duty and registration should also be brought under its purview. He said that the state will be keen to do this.States gets income from this. In such a situation, would the state want to lose it? Another option may be that apart from bringing the stamp duty to different GST for both the land and the house. He said that it would be an additional option for the customers.
Buy and Sell property on input credit: G.S.T. As Leightage Expert Ashok Batra says,”GST on the purchase and sale of land and every kind of property. It will also start getting input credit, which is more important than stamp duty regime for Bayer or Seller. This will increase legal property transaction and tax will increase. “That means if you buy a house of 10 million, then give stamp duty of 8 lakh rupees. This G.S.T. If you change in the first 8 lakh GST But when he will sell it for 1.5 crore and assume that 12 lakh GST So if you get 8 lakhs given earlier you will get input credit and your liability will be only 4 lakhs.
Property tax will be closed on transaction: Property Consultant GN Purohit said that in metropolitan cities like Delhi, people buy a property on a large scale but take the paper but do not get the registry and most of them even hold property and sell it for a few days. In such a situation, the government could not get the stamp duty. GST on Property Transaction After the tax evasion will stop, the input tax credit will increase in the purchase and sale.
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