A meeting of the Group of Ministers (GoM) in Goa, held on Tuesday, discussed proposals regarding the goods and services tax (GST) for the real estate sector. The meeting didn’t reach a consensus on most proposals. The group deferred the proposal to exempt GST on long-term leases to the tourism sector. 

It also raised several major issues in real estate that require further details. The proposal to exempt GST on service costs and premium fees on long-term land leases was rejected, and the decision to raise the affordable housing threshold in metro areas was postponed.

The meeting, chaired by Goa Chief Minister Pramod Sawant, discussed giving infrastructure status to the tourism sector to enable tax exemptions. The group may reconvene to discuss real estate issues again, as no final decision was made at this meeting.

The group also deferred the decision to exempt GST on the redevelopment of buildings in cooperative housing societies on an ownership basis. It postponed the decision regarding the preferential treatment of free houses allotted to slum dwellers in redevelopment projects.

The meeting concluded without reaching significant agreements, and another meeting is scheduled in Gujarat on October 25. On the second day of the conference, the group will discuss rate rationalisation and consider the way forward on GST rates and several other issues, including the treatment of GST on health and life insurance premiums.

The group will play a crucial role in shaping the agenda for the upcoming 55th GST Council meeting, expected to be held in November.  The 54th GST Council meeting tasked the group with returning with more thorough reviews. The agenda included the potential exemption or reduction of GST rates on health and life insurance premiums.

Additional agenda items for the group will include whether the current GST treatment of non-alcoholic beverages should be revised. This category encompasses bottled and packaged drinking water, carbonated non-fruit beverages, fruit-based drinks, and packaged tea and coffee, all subject to varying tax rates.

Ready to invest like a pro? The Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists, insightful market analysis and, much more!