GST to impact the revenue of Telangana
State commercial taxes and revenue officials have started studying the possible effects on the state government in case the Centre brings the real estate sector under the Goods and Services Tax (GST) regime. Commercial taxes principal secretary Somesh Kumar held a preliminary meeting with revenue special chief secretary BR Meena at the Secretariat in this regard here on Wednesday.
The Centre is seriously thinking of bringing the real estate sector under GST. In this backdrop, state officials have decided to have a detailed meeting with officials of the stamps and registration department and others at the Secretariat on Friday.
However, the state government is of the view that the real estate sector should not be brought under the GST immediately. The state government is worried that four or five states, including Delhi, gave their consent to the Centre for bringing the real estate sector under GST. Telangana officials are of the view that even if the real estate sector is under GST, the Centre cannot check the black money that is pumped into the sector. This is because the government rate at which the stamp duty is paid varies considerably with the market value for which transactions take place.According to officials, the GST Council meetings had discussed whether to bring real estate sector under GST or not. Then TS officials wanted the council not to make any decision in a hurried manner.