Black Money: Next Frontier is to Bring Land and Realty under GsT (Download PDF)

Doorsteptutor material for CLAT is prepared by world's top subject experts: fully solved questions with step-by-step explanation- practice your way to success.

The steps taken to reduce black cash and streamline election finance, the one of the biggest sources of black money is land and real estate. Bring supply of land and real estate into the GST. The GST law does not include LARE (Land and Real Estate) .

Highlight

  • Few clarifications are in order to clear up the misconceptions and mis-information

Misconceptions:

Image Shows the Misconceptions
  • Stamp duty is charged by state governments in land or property sold to register the sale.
  • The supply of land and real estate in GST can be levied as a service tax.
  • The law makes an arbitrary distinction between works contracts and ready-made property.
  • Service tax applies works contracts both for commercial and residential properties.
  • The total value of the property 4.5 % tax charge. but no credits are available for taxes paid on inputs such iron and steel, cement, and other fittings & fixtures (many of which are transacted informally) that go into the construction of a property
  • Several international precedents for taxing the sale of land under the GST, including in the VAT systems of Australia, Singapore, Malaysia, Indonesia, and South Africa.

GST

  • Goods and Services Tax (GST) is a proposed system of indirect taxation in India.
  • GST will be levied on manufacture, sale and consumption of goods and services.

Benefits of GST

  • GST will be efficient tax system and will make both online and offline business easier. It will be more beneficial for online businesses.
  • The advantages of GST are: Effective tax rates will be lower
  • Easy remedial of tax disputes
  • Multiplicity taxes and their cascading effects will be eliminated
  • Tax structure and compliance procedures will be simplified Center and State tax administrations will work in coordination so that duplication and compliance costs will reduce
Application of GsT

- Published/Last Modified on: March 16, 2017

Economy

Developed by: