Bring real estate under GST, Sisodia writes to Jaitley
NEW DELHI: Delhi deputy chief minister Manish Sisodia on Sunday wrote to Union finance minister Arun Jaitley demanding that the real estate sector be brought under the ambit of the Goods and Services Tax (GST).
In a letter to Jaitley, Sisodia said if real estate comes under the new indirect tax regime, exorbitant hike in land prices could be controlled and the flow of black money curbed. The minister demanded that the matter of bringing the real estate sector under the GST regime be included in the agenda for the next GST Council meeting to be held at Guwahati on November 9.
Sisodia, who also holds the finance portfolio, further stated that “extraordinary political will power will be required for taking this step.”
“My view is that if GST is implemented i n all steps involved in development of real estate, then every recorded transaction will lead to tax input credit and exorbitant hike in land prices will be checked, entire chain will remain intact and flow of black money in real estate could be curbed,” Sisodia wrote in the letter.
Since the implementation of GST in July, the Delhi deputy chief minister has been demanding that real estate be brought under it.
“So far, no GST is being levied on developed/readymade property. Therefore, right from sale/ purchase of land to development of property and its transactions — the entire process has led to destruction of input tax credit chain. This is how black money is thriving in real estate sector,” Sisodia said.