Aadhaar could be made mandatory for buying international air tickets, cars
Real estate is often seen as one of the worst sectors in so far as tax evasion is concerned. To address this issue, the government might soon move to bring it within the ambit of goods and services tax (GST).
Finance Minister Arun Jaitley indicated this on Thursday while speaking at Harvard University in the US. The GST Council, at its November meeting in Guwahati, would consider covering the sector under the new indirect tax regime, Jaitley said.
While delivering a lecture on tax reforms in the country, he called the taxation system in India one of the least efficient in the world, with a very small tax base. He also hinted at making Aadhaar mandatory for buying a car or international air tickets in the future, taking a cue from the recent Supreme Court judgement.
The GST was rolled out on July 1, replacing a large number of indirect taxes with one unified tax of five rates. Petroleum, real estate, and alcohol were kept out of its ambit.
“The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I believe that there is a strong case to bring real estate into the GST,” Jaitley said.
The stamp duty, which is outside the GST, has complicated the tax structure for real estate. A lot of states had opposed the inclusion of the stamp duty in the GST, as it was a source of revenue for them.
“Some states want; some do not. There are two views. Therefore, by discussion, we would try to reach one view,” he said.
A 12 per cent GST is levied on construction of a complex, building, or civil structure intended for sale, wholly or partly. However, land and other immovable property have been exempted from the GST. If real estate is brought under the GST, the final tax would be almost negligible, Jaitley added.
Read the Full Article → Real Estate under GST
Finance Minister Arun Jaitley indicated this on Thursday while speaking at Harvard University in the US. The GST Council, at its November meeting in Guwahati, would consider covering the sector under the new indirect tax regime, Jaitley said.
While delivering a lecture on tax reforms in the country, he called the taxation system in India one of the least efficient in the world, with a very small tax base. He also hinted at making Aadhaar mandatory for buying a car or international air tickets in the future, taking a cue from the recent Supreme Court judgement.
The GST was rolled out on July 1, replacing a large number of indirect taxes with one unified tax of five rates. Petroleum, real estate, and alcohol were kept out of its ambit.
“The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I believe that there is a strong case to bring real estate into the GST,” Jaitley said.
The stamp duty, which is outside the GST, has complicated the tax structure for real estate. A lot of states had opposed the inclusion of the stamp duty in the GST, as it was a source of revenue for them.
“Some states want; some do not. There are two views. Therefore, by discussion, we would try to reach one view,” he said.
A 12 per cent GST is levied on construction of a complex, building, or civil structure intended for sale, wholly or partly. However, land and other immovable property have been exempted from the GST. If real estate is brought under the GST, the final tax would be almost negligible, Jaitley added.
Read the Full Article → Real Estate under GST
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