Real Estate Will Be Brought Under The Purview Of GST Said Jaitley
Indian Finance Minister Arun Jaitley is planning to bring real estate to the realm of GST. If this is done, effectively only one tax will be required to buy the house, which means it will be cheaper to own a house. While giving lectures at Harvard University, he said that the matter will be discussed in the next GST meeting on November 9 in Guwahati. Jaitley stated that the highest amount tax is stolen in real estate, so it is necessary to bring the sector under the purview of GST.
Jaitley said in an annual Mahindra lecture on tax reforms in India, “Real estate in India is one of the areas where tax evasion and cash are most upheld. It is still out of the realm of GST. Some states are insisting on this. I personally believe that GST should be brought under the real estate realm.”
Finance Minister Arun Jaitley said, “Some states are also willing to bring it. And after this array of opinions and discussion, we will try to get the consent on one vote”. He affirmed that the benefit will be to the customer, who will have to pay only one tax on the whole product.
Jaitley explained that due to the discount and low cost given to bring people under the tax scope, it will also help reduce the size of the economy of black money. 12% GST has been imposed on the construction of any premises, building, and community structure or by selling it to a buyer or to a buyer. Although land and other fixed assets are excluded from the GST scope.
On the note-taking, Jaitley said, “This was a fundamental improvement which was necessary for changing India as a more tax-paying society”. If you look at its long-term impact, the control on black money has increased. It has enhanced the personal tax base. It reduced the cash currency by 3%, which was floating in the market.”
He said, it is natural that if someone has money, he will deposit in the bank, but this does not mean that his money will ultimately be legal. He is still accountable for this. Therefore, the secret identity of keeping cash was brought to an end, and the people who kept it have been identified. Jaitley said that the government is capable of examining 18 Lakh people whose deposits do not match their normal income. They are accountable to the law and they have to pay their taxes. It is notable that Jaitley is on a week-long trip to America. He is on the tour to participate in the annual meeting of World Bank and International Monetary Fund.