Bring in Land & Real Estate within GST Purview & Keep Consumer Durables at Lower Rates Post GST: Manish Sisodia

Deputy Chief Minister and Minister of Finance, Government of NCT of Delhi, Mr. Manish Sisodia on Thursday demanded that land and real estate ought to be brought in within the ambit of GST and its taxation slab for vast majority of consumer durables be kept at lower ceilings to make GST a mass friendly taxation.

The Minister assured India Inc. that he would still take up the aforesaid issues in the forthcoming GST Council meetings as he felt that land and real estate being outside purview of GST and that higher taxation slab for consumer durables would kill its basic purpose.

Addressing a “National GST Conclave : One Nation One Tax-Pivotal Tax Reforms” organized by the PHD Chamber of Commerce and Industry here today, Mr. Sisodia also declared that dual control of GST also defeated its intended objectives and sought more intense consultations on the issue in future course of GST Council, arguing that the objective of the GST should be consumer and traders oriented and it should not entirely aim at raising taxation with higher rates.

“I fought tooth and nail for inclusion of land and real estate within the ambit of GST but somehow there couldn’t be an absolute consensus on the issue at number of GST Council Meetings of all the States Finance Ministers because of obvious reasons.  I will still try for its inclusion in GST as land and real estate has received huge investments both outside and inside the country”, the Minister pointed out making a prophecy that the future generations will suffer its pain in the long run if land and real estate remain outside purview of GST.

“Consumer durables such as TV, Mobiles, electric appliances and host of similar such articles should not be taxed luxuriously.  That is our view and we will continue to articulate them whenever necessary in the interest of Aam Aadmi though the GST tax rates have yet to be finalized”, said Mr. Sisodia.

Chairman, CBEC, Mr. Najib Shah in his remarks, emphasized asking industry not to keep seeking exemptions under the GST regime as most of such exemptions would go away after it is put in place after July 1st although the deciding authority on doing away with exemptions post GST and fixing its rates would be the prerogative of the GST Council.

The Chairman also clarified that the anti-profiteering clause in GST Law is there as an enabler and industry should not read too much on it, promising that post GST host of indirect taxes would subsume in it making the new law user friendly.

President, PHD Chamber, Mr. Gopal Jiwarajka in his welcome remarks, demanded to know the justification of anti-profiteering clause in GST regime though he felt that post GST, indirect taxation would be by and large compliant by all sections of society and pave the way for higher revenue generation for the government.

In his opening remarks, Chairman, Indirect Taxes Committee, PHD Chamber, Mr. Bimal Jain said that for implementation of GST Law by July 1, find GST Law with Rules made public for impact and IT preparedness as also 4-tier rate’s classification of goods list be provided.  Training and awareness programme should be conducted for both government officials and trade for better implementation of GST so that it becomes seamless and easier for its timely implementation.

Among others who spoke on the occasion comprised Sr. Vice President, PHD Chamber, Mr. Anil Khaitan and its Co-Chairman, Indirect Taxes Committee, Mr. N K Gupta.