Bringing real estate under GST will be a 'disaster': Congress

With the Centre mulling to bring real estate under Goods and Services Tax (GST) ambit, the Congress Party on Friday said that the decision would prove to be a disaster.

Union Finance Minister Arun Jaitley on Thursday said that the issue of bringing real estate under the GST's ambit will be discussed in the next GST Council meeting to be held on November 9 in Guwahati.

Talking to ANI, Congress leader Raju Waghmare said, "BJP and Arun Jaitley have decided to take this country in a pothole. There is already chaos in the real estate market, so bringing real estate under GST ambit will be a disaster."

Another party leader Tom Vadakkan said that the government should take stakeholder and the Opposition into confidence before taking this decision.

"We do hope they have discussed this with the stakeholders and it does not create a situation where have had a problem with GST in another state. If the discussion is held and stakeholder and Opposition are taken into confidence then that it will be very useful," he told ANI.

While delivering the 'Annual Mahindra Lecture' on India's tax reforms at the prestigious Harvard University in Washington, Jaitley said, "The one sector in India where the maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I personally believe that there is a strong case to bring real estate into the GST."

The GST, which brings the economy under a uniform tax regime, was implemented from July 1 this year.

-ANI