26.02.2024: ‘GST Council may soon clarify on exemption of tax to Rera bodies’

The GST Council is likely to soon clarify that Real Estate Regulatory Authority (Rera) will not be required to pay Goods and Services Tax (GST), an official said.
According to the official, Rera, which functions as a regulator as well as facilitator for the realty sector, is covered under Article 243G of the Constitution dealing with powers, authority and responsibilities of panchayats.
Rera was set up in different states to ensure transparency in real estate projects, protect the interest of consumers and to establish an adjudicating mechanism for speedy dispute redressal.
The official said that after discussions with Rera functionaries about the nature of their function it was decided that GST is not applicable on them.
The official further said that Reras are funded by respective state governments and hence levying GST would mean taxing state governments.
A meeting of GST Council, chaired by Union Finance Minister and comprising state ministers, is likely to be held before the imposition of Model Code of Conduct for the general election due in April-May.
The last meeting of GST Council was held on October 7, 2023.
Source: Business Standard 

Register Today