How much GST should we pay?
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The decision making on what Goods and Services to be covered under GST with what rate of tax to be levied are under process at various levels of the Government.
This petition is being launched to let the Parliament and other decision makers to know that why GST on renting and leasing of real estates as a deemed services will be unfair and discriminatory on large population that do not have their own houses or business place.
GST on Residential Property:
1. At the first place proposed GST on renting services is unfair and discriminatory on those who occupy the house on rental basis vis-a-vis those who have been fortunate for staying in their own property.
2. Is it fair to impose the tax on those staying on rent and keep the self occupied owners out of tax? Who is more capable to pay the proposed tax? The one who is fortunate to own or the one who is not so fortunate and thus stays on rent?
3. Why should those employees (including Government employees) who have to stay on rent due to job transfers pay GST on rentals and those who stay in their own houses remain out of tax?
4. There will be huge issues of valuation of deemed services where premises are occupied by near relatives without actual payment of rent (e.g. premises owned by parents or siblings)
5. As the tax so collected will be used in development of infrastructure, prices of the houses will keep increasing due to value accretion and those who are presently not owning the house will have to pay more to buy the house in future (strange but true that unless the Government levies annual tax on ownership properties, price of the house will keep going up)
GST on Commercial Property:
6. GST on commercial property also favors the the businesses that conducts the commercial activity from self owned premises and discriminates those who conducts their activity from a rented premises. (Even if it is argued that credit of the taxes will be given, small business & service providers and certain necessities such as tax free goods dealers, medical profession, education etc. will have to bear the burden of tax so levied)
7. The level playing field among the businesses are disturbed by such partial levies. The disturbance to level playing field is an artificial hindrance to the start ups and growth of new business. If renting has to be taxed there should also be tax on self service property as well.
It is my request and petition to the Parliament that even if it may be legal to tax the deemed services of renting, it will not be fair to bring part of the population under the tax net and keep others out of it, for the same ultimate benefit i.e. occupying the residential or commercial property.
In the alternate you may levy a small annual tax on all real estates i.e. lands and built up properties that otherwise also gets the direct benefit of value accretion with happening of nation building from the taxes paid by all indirect and direct tax payers of the nation.
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