GST Council may soon clarify tax exemption to RERA
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 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.
