GST Council set to grant RERA tax exemption

The GST Council is expected to grant an exemption to the Real Estate Regulatory Authority (RERA) from paying Goods and Services Tax (GST). RERA, which serves as a critical regulator and facilitator in the real estate sector, has been a pillar in promoting transparency and protecting consumer interests across many states.
Recent discussions between RERA personnel and the authorities have highlighted the unique character of RERA's position, bringing it closer to the governmental functions defined in Article 243G of the Constitution. RERA organisations are generally supported by state governments, therefore subjecting them to GST would essentially tax the states themselves.
This upcoming clarification follows discussions prompted by the removal of GST exemptions on some services provided by key regulatory agencies such as the Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), and others, beginning July 18, 2022. As a result, the ramifications for RERA organisations have come under investigation, particularly given the absence of the Input Tax Credit (ITC) in the residential real estate industry.
Excluding RERA authorities from GST considerations could potentially lessen financial burdens for both developers and homebuyers alike. This move not only signifies a regulatory relief but also carries economic implications that could stimulate growth in the real estate market.
A formal announcement from the GST Council is anticipated to precede the imposition of the Model Code of Conduct for the upcoming general elections, scheduled for April-May.
Amidst ongoing discussions and evolving regulatory frameworks, the anticipated GST exemption for RERA stands as hope for the real estate sector, poised to streamline processes and instill confidence among investors and homebuyers alike.

Next (PM Modi announces INR 41,000 crore investment in 2,000 railway projects)

GST Council set to grant RERA tax exemption

This Month

Overview

Explore

Join Us