The landmark tax reform measure that will unify the $2 trillion Indian economy and 1.3 billion people into a single market for the first time ever – Goods and Services Tax (GST) – will roll out from July 1. The process for the same is ongoing and the government on Thursday hiked the GST rate for the construction sector to 18 per cent from 12 per cent, but removed land value from the computation of tax liability, as per a report by PTI. The Central Board of Excise and Customs (CBEC) tweaked the tax rate and the mode for calculation while notifying the tax rates for central GST, IGST and Union Territory GST.
GST will not be imposed on fully constructed properties, where completion certificate has been issued by a competent authority. However, Construction of complex, building, civil structure, including a complex or building intended for sale to a buyer, wholly or partly will attract a GST rate of 18 per cent. The GST Council had in May decided to levy 12 per cent GST on construction of a complex, building, civil structure or intended for sale to a buyer, wholly or partly. The value of land was to be included in the amount on which tax was to be calculated. The council, sources said, is likely to give a post-facto approval to changes in the GST rate schedule for the construction sector.
You May Also Like To Watch This:
Meanwhile, the government is all set to launch GST and will host a midnight function on June 30 to launch the sweeping tax reform measure. Perhaps for the first time, the government will use the circular-shaped Central Hall, to launch a new taxation system that is set to dramatically re-shape the economy. Modi will be the key speaker at the function. President Pranab Mukherjee is also likely to attend the function.
While earlier the political parties including Left, Trinamool Congress (TMC), Dravida Munnetra Kazhagam (DMK) and the main Opposition, Congress declared that their party MPs would boycott the function. However, Finance Minister Arun Jaitley urged the parties to reconsider their decision and mark their presence at the function.