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Karnataka - Kelkar favours housing & construction in GST
net
The chairman of the 13th finance
commission, Vijay Kelkar, has favoured bringing in the construction and housing
sector (C&H) and the rail sector under the proposed goods and service tax (GST)
net, which is expected to be rolled out from next April. “The present piece meal
taxation of this (C&H) sector encourages perverse incentives. With no provision
of input tax credit in place there is little incentive to record transactions at
either the construction or sale stage which leads to substantial loss of tax
revenue and fuels the parallel economy,” he said. |
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