Elusive Consensus on GST For Realty Sector

A group of ministers (GoM) has failed to reach consensus on a number of proposals pertaining to the real estate sector. The GoM has deferred the decision on exempting GST on the redevelopment of buildings in cooperative housing societies on an ownership basis. The panel also deferred the decision related to the preferential treatment of free houses allotted to slum dwellers in slum redevelopment projects. Further, the panel turned down the proposal to exempt GST on service costs and premium fees associated with long term land leasing executed by government institutes. The decision on the proposal to increase the affordable housing threshold in metro areas from Rs 45 lakh to Rs 75 lakh has also been deferred.