The goods and services tax (GST) council is likely to consider reducing GST rates on most construction materials to 18 percent from 28 percent, reported Mint on Tuesday.

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The proposal to reduce rates comes as the government is looking to increase job opportunities in the sector prior to the upcoming Lok Sabha elections, the report said citing a person familiar with the development.

“A reduced GST rate on cement would aid in bringing down tax costs for not only individual buyers, but also for businesses, as construction-related GST credits are typically not available…These benefits would further enhance if the GST rate on paints is also reduced to 18%,” Abhishek Jain, partner at EY was quoted as saying in the report.

This is not the first time when the government is looking to ease regulations to help the real estate sector clear the existing unsold inventory.

Last month, it had relaxed the carpet area norms for middle-income group housing, under the Pradhan Mantri Awas Yojana, to bring more homebuyers under the interest subsidy scheme.

First Published:Jun 26, 2018 11:41 AM IST