GST Council may Meet Soon, Clarification on GST Exemption to RERA Likely

A GST Council Meeting is likely before the Codes of Election Conduct are enforced
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A meeting of the GST Council, presided over by the Union Finance Minister, is anticipated before the Model Code of Conduct is enforced for the upcoming general election in April-May. There are strong indications that the Real Estate Regulatory Authority ( RERA ) may soon be exempt from paying Goods and Services Tax ( GST ).

According to an official source, discussions with RERA officials revealed that the nature of their functions does not warrant the application of GST. RERA, established in various states to ensure transparency in real estate projects, safeguard consumer interests, and expedite dispute resolution, is funded by respective state governments. Imposing GST on RERAs would effectively amount to taxing state governments.

In the residential real estate sector, Input Tax Credit ( ITC ) is not permissible. Therefore, excluding RERA authorities from GST considerations could lead to reduced expenses for both developers and homebuyers. A clear directive from the GST Council on this matter is eagerly awaited and is expected to bring significant benefits to the sector, Mohan concluded.

The 52nd Goods and Services Tax ( GST ) Council convened on 07-10-2023 discussed the constitution of the GST Appellate Tribunal ( GSTAT ) and taxation of many goods and services.

However, no decision with respect to taxation of Online Gaming was taken. Amendments to the constitution of the members of the GSTAT with respect to  Judicial members and Lawyers who get appointed have been amended. Maximum age of tenure has been increased to 70 for President whereas the same was 67 earlier and that of members to 67 which was earlier 65. A Minimum age was not specified earlier. 50 years for both president and member Advocate – minimum experience of 10 years to be judicial member.

With respect to Goods, as an attempt to aid in promotion of millets, the food preparations of Millet Flour in Powder for with at least 70% millets ( HS 1901 only ) by weight being blended with any other flour without branding ( sold loose ) will be exempt from GST levy. However, 5% GST will be applicable for prepackaged and labeled food preparations containing millets of the adobe description.

The 52nd GST Council meeting approved exemption of both Grain and molasses Extra Neutral Alcohol used to manufacture Alcoholic Liquors from GST.  Despite being allowed by Allahabad HC to tax, the Central Govt exempted the same from GST, however, the states are still competent to tax the same.

The 52nd GST Council also approved the Amnesty Scheme for appeal filing till January 2024 subject to additional Pre-Deposit of 2.5% provided that the amount shall be paid through electronic cash ledger. The Job work for processing of barley into mold irrespective of supply, will attract only 5%, the GST Council Meeting further clarified.

The Council had also confirmed the GST Exemption for sanitation, water supply, public health, conservancy, solid waste  management, slum improvement and upgradation by Govt Authorities.

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