GST Council forms GoM on real estate tax rate

The Goods and Services Tax (GST) Council on Thursday constituted a seven-member group of ministers (GoM) to look into the issues of GST rates for the real estate sector, Finance Minister Arun Jaitley said here.

The Council constituted another GoM to look into the uniformity of tax rates in case of lotteries, regarding which there are wide differences between the states and the Centre.

The Council would discuss the recommendations of both GoMs in its next meeting which is yet to be scheduled, Jaitey told reporters after the 32nd GST Council meet.

"Two items, one relating to real estate and the other relating to uniformity of taxation on the lottery or other issues arising out of it ... both saw diverse opinion and so in accordance with our past practices, we take a decision for unanimity and consensus.

"So, for both these subjects we have ... for real estate a seven-member GoM has been constituted, which will give us their recommendation. It will be discussed at the next meeting," the Minister said.

It was widely expected that the rate on under-construction residential properties would be brought down to 5 per cent from the current 12 per cent in Thursday`s meeting after the finance minister in December had said that the January meeting would decide on the matter.