Real estate panel mulls cutting GST on houses to 5 PC

The panel, formed to review goods and services tax on the real estate sector, on Friday considered lowering GST rate on residential houses to 5% without any input tax credit, a finance ministry official said. Currently, the effective GST rate on affordable housing is 8% and on the rest 12%. The panel is also mulling lowering the tax rate on affordable housing from 8% to 3%, the official said. The recommendations are likely to be finalised in the next two days, said Mauvin Godinho, a minister from Goa. ‘‘I can certainly tell you that the rates have to be lowered, and will be lowered,’’ Godinho said emerging from the meeting.