Question: Consider the statements in reference to a recent GoM (Group of Ministers) constituted by government:
(1) The GoM was constituted to boost the real estate sector under GST regime.
(2) The constituted group has 5 members in it.
(3) The convenor of the group is Nitin Patel.
Chose the correct option:
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) All of the above
- On 15 January 2019, Central Government has constituted a seven-member Group of Minister (GoM) to boost the performance of real estate sector under the Goods & Services Tax (GST).
- The convenor of the Group is Nitin Patel, Deputy Chief Minister of Gujarat. The members include Finance Ministers of Maharashtra, Karnataka, Kerala, Punjab and Uttar Pradesh and the Panchayat Minister of Goa.
- The decision of its formation was taken in the last GST Council meeting which took place last week. The GoM will analyse the tax rate of GST and will further suggest a composition scheme for residential construction units.
- The panel will look into various issues like the legality of inclusion or exclusion of land or any ingredient in the composition scheme and suggested valuation mechanism.
- The panel will examine different aspects of the GST levy on Transfer of Development Rights and development rights in a joint agreement and suitable model. The current rate of GST on under-construction flats and houses in 12% whereas no GST on ready-to-move-in flats with a completion certificate.
- The committee will also invite officers from Centre and States, if required. The Council`s law and fitment committee will also assist the panel.