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GST Council likely to meet on 20th Feb, Main Focus on Relief to Real Estate Sector

By Taxscan Team -

The GST Council is likely to meet on 20th February through video conference to discuss the relief to real estate sector, sources said. The Council may consider the proposal made by GoM to slash the tax on cement to 18 percent from 28 percent at its meeting next week along with a ministerial panel report that proposes a cut in rates in under-construction properties, including affordable homes.

A rate cut in cement to 18 percent will lead to a loss of Rs 13,000 crore annually to the government.

As the Loksabha election gets closer, the NDA Government is keen to ensure the GST cut actually benefits the end users in terms of lower prices.

Officials said the GST cut in cement and the panel report were on the agenda of the GST Council meeting on February 20. The Cement Manufacturers Association had been pitching for a cut in the GST to 18 percent as it would boost infrastructure spending and create jobs while reducing the costs of buying a house.

While cutting the rates, the council could come out with some guidelines to ensure the manufacturers pass on the benefits of the rate cut to consumers, officials said.

Union minister Arun Jaitley had in a Facebook post said lowering the tax rate on cement was a priority. Cement is the only commodity used by the common man that is taxed at the highest slab.