Federal indirect tax body, the Goods and Services Tax (GST) Council, on Wednesday deferred a decision on lowering the tax rate on under-construction property to Sunday, finance minister Arun Jaitley, who chaired the meeting, said.
A meeting of the Council through video-conference was adjourned after some state ministers requested for a face-to-face meeting to take a call on the subject.
The council will hold 34th meeting on Sunday,where the proposal for the tax cut will be discussed.
A ministerial panel led by Gujarat deputy chief minister Nitin Patel is in favour of lowering the GST rate on under-construction properties to 5% without credit for taxes paid on raw materials. The seven-member panel also favours lowering the rate on affordable housing from 8% to 3%.
The move to lower the tax rate sharply with no input tax credit is aimed at giving relief to home-buyers, but it remains to be seen whether the Council will approve it without changes.