Govt to discuss bringing real estate under GST in Nov
GST
Dated:- 12-10-2017
Washington, Oct 12 (PTI) The issue of bringing real estate under the GST's ambit will be discussed next month, Finance Minister Arun Jaitley said today, as he acknowledged that it is the one sector where maximum amount of tax evasion and cash generation takes place.
The matter will be discussed in the next meeting of the GST Council to be held on November 9 in Guwahati, Jaitley said while delivering the 'Annual Mahindra Lecture' on India's tax reforms at the prestigious Harvard University.
"The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estat
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the minister said.
Jaitley said the reduction in eventual expenditure coupled with incentivising people to enter the tax net may also help reduce the size of "shadow economy".
A 12 per cent GST is levied on construction of a complex, building, civil structure or intended for sale to a buyer, wholly or partly. However, land and other immovable property have been exempted from the GST.
On demonetisation, Jaitley said it was a "fundamental reform" which was necessary to transform India into a more tax-compliant society.
"If you see the long-term impact of it, demonetisation brought in more digitised transactions; it brought the issue to the centerstage. It expanded the individual tax base. It compressed the cash c
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r of companies but individuals who are coming into the tax net," he said.
Jaitley said some people had "misunderstood" the objective of demonetisation "which wasn't to confiscate somebody's currency".
"Obviously if somebody has currency and deposits in the bank, it does not become lawful holding. They still have to account for it. Therefore, the anonymity which was attached to a cash currency came to an end and that holding got identified.
"The government was able to trace out about 1.8 million people whose deposits are disproportionate to their normal incomes. And they are all answerable to the law and pay their taxes," he said.
Jaitley is on a week-long stay in the US, during which he wi
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