GST Council may reduce rates on flats, cements

The 33rd GST Council meeting is set to be held on February 20. The market participant has started speculating that in this meeting the tax rate on realty sector, lottery, cement, etc. may be reduced. 

At present, the GST on under construction residential properties attract 12 per cent rate. In the GST Council meeting tomorrow, it is likely to be lowered to 5 per cent without input tax credit. Purchase of properties which have received completion certificates does not attract levy of GST. 

In today’s trading session, the stock of realty sectors were in focus and the stock of Prestige Estates was up by more than 5 per cent. Also, stocks like, Oberoi Realty, DLF and Mahindra Lifespace were up by nearly 2.8 per cent, 2.7 per cent and 1.9 per cent respectively. Other realty stocks were also trading in the positive territory. The BSE Realty index was up by around 2 per cent. 

Besides, the GST Council is likely to reduce GST rate on cement from the present 28 per cent to 18 per cent. In terms of a state organised lottery, the GST rate is 12 per cent, while the GST on state authorised lottery is 28 per cent. The GST Council may decide to equalize the rates on the state organised and state authorised lotteries.