GST Council Expected to Provide Clarity on Tax Exemption for Real Estate Regulatory Authority Soon
The GST Council is chaired by the Union Finance Minister and attended by state ministers, before the enforcement of the Model Code of Conduct preceding the forthcoming general elections scheduled for April-May
The Goods and Services Tax ( GST ) Council is expected to address the issue of tax exemption for Real Estate Regulatory Authorities ( RERAs ), aiming to bring clarity to this crucial aspect of the real estate sector. The GST Council is chaired by the Union Finance Minister and attended by state ministers, before the enforcement of the Model Code of Conduct preceding the forthcoming...
The Goods and Services Tax ( GST ) Council is expected to address the issue of tax exemption for Real Estate Regulatory Authorities ( RERAs ), aiming to bring clarity to this crucial aspect of the real estate sector.
The GST Council is chaired by the Union Finance Minister and attended by state ministers, before the enforcement of the Model Code of Conduct preceding the forthcoming general elections scheduled for April-May. The last convening of the GST Council occurred on October 7, 2023.
Rajat Mohan, Executive Director at Moore Singhi, emphasised the significance of the issue, shedding light on the historical context of GST exemptions for key regulatory bodies in India. Notably, prior to July 18, 2022, entities such as the Reserve Bank, SEBI, IRDA, FSSAI, and the GST network enjoyed GST exemption status. However, the revocation of this exemption has sparked discussions regarding the tax implications for RERA bodies, reported Hindustan Times.
He added that within the residential real estate sector, Input Tax Credit ( ITC ) is not applicable. Therefore, excluding RERA authorities from GST considerations could potentially lead to cost savings for developers and homebuyers alike.
Consequently, a clear directive from the GST Council on this matter is eagerly awaited, with industry stakeholders anticipating significant benefits and streamlined operations within the sector upon clarification.
The RERA is a regulatory body established to oversee and regulate the real estate sector, primarily focusing on enhancing transparency, accountability, and consumer protection. RERA was introduced in India through the Real Estate ( Regulation and Development ) Act, 2016, which aimed to bring about much-needed reforms in the real estate industry.
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