Industry body Assocham on Tuesday called for bringing petroleum products and real estate under the ambit of the Goods and Services Tax (GST).
According to Assocham’s Secretary General Deepak Sood, states must be brought on board for inclusion of petroleum products and real estate under the GST.
Currently, the GST Council can take a decision on the issue.
“Assocham has been advocating coverage of the one-nation-one-tax to the petroleum products as also real estate,” Sood said.
“States must be brought on board, as such a move would help the country immensely by boosting consumption demand and incentivizing investment in the real estate sector.”
Besides, he pointed out that as the country heads towards a largely stabilised GST regime after three years of its introduction, lockdown and concentration of pandemic cases in major economic centres have thrown up new challenges.
“Major economic hubs like Mumbai, Delhi, Chennai, Bengaluru, Hyderabad and Ahmedabad are in the midst of a rising number of Covid-19 cases. Despite unlocking the economy, several states are forced by the pandemic to maintain restrictions, putting a double pressure on public health emergencies and major or partial shutdowns of commercial activities,” Sood said.
“This is exerting a huge financial pressure both on the government and the businesses. Against a monthly collection of Rs one lakh crore, the GST collection has been reduced to half that level.”