London: Finance Minister, Arun Jaitley has said, GST Council will discuss bringing real estate under its ambit.
Delivering a lecture on India’s tax reforms at Harvard University, Boston today Jaitley said, real estate sector in India is one sector, where maximum amount of tax evasion and cash generation takes place and which is still outside the GST.
He said the matter will be discussed in the next meeting of the GST, which will be held on 9th November, in Guwahati.
The Finance Minister said the move would benefit the consumers who will only have to pay one final tax on the whole product. The finance minister said India had historically been one of the least efficient tax system in the world with an extremely small tax base.
A 12 per cent GST is levied on construction of a complex, building, civil structure or intended for sale to a buyer, wholly or partly. However, land and other immovable property have been exempted from GST.
Interacting with students at the University, Jaitley said Indian government is working on a plan to rebuild the capacity of the banking sector so that it could support growth.
Jaitley is on a week-long stay in the US, during which he will participate in annual meetings of the IMF and the World Bank.