Hyderabad, Nov 14 (PTI) If the real estate sector isbrought within the ambit of GST, it should be along with thestamp duty and moderate rate, and should not add to the costof housing and construction, according to an industry body.
The Associated Chambers of Commerce and Industry of India(Assocham) said the Centre is certainly in favour of realtyunder the Goods and Services Tax (GST) but the states have tobe brought on board because there are revenue implications.
There are reports that the realty sector may be broughtunder the GST without stamp duty and other levies likeproperty tax. That will serve no purpose and instead wouldlead to more confusion, Assocham secretary general D S Rawatsaid.
"If the sector has to be given a boost, it should bebrought under GST along with stamp duty with the rate beingmoderate and should not add to the cost of the housing orconstruction," Rawat told PTI.
"That would be a real demand push. In any case, there isno justification for cement still remaining in the 28 per centcategory," he said.
The Assocham official also expressed his views on whetherpetroleum, electricity and alcohol should be brought under theGST.
He said ideally all these sectors, be it real estate,petroleum, electricity and alcohol, should be brought underthe GST. But, expectations have to be matched with what isdoable at this point of time.
As far as the petroleum sector is concerned, Rawat said,the states are certainly not on board as they depend hugely onthe revenue from sale of petrol and diesel. Similar is thecase with the Centre, he said.
"So, it will take a lot of time and would also depend onthe kind of revenue impact the initial period of the GSTrollout has shown," Rawat said.
"Ideally from the consumer point of view, if petroleum isbrought under GST, the pump prices of petrol and diesel wouldcome down drastically, but that would be asking a bit too muchat this point of time. Let's be real," he said.
Rawat also said that electricity must be a part of theGST regime under the "merit and essential items attracting thelowest level (rate)".
"For alcohol, even if it is brought (under GST), it wouldbe under the demerit list and may even attract additionalcess. But for administrative point of view, it makes sense tobring it under GST," he added. PTI RS GKBAL.
This is unedited, unformatted feed from the Press Trust of India wire.