The GST Council is likely to clarify that Real Estate Regulatory Authority (RERA) will not be required to pay Goods and Services Tax (GST) as it is funded by state governments and falls under Article 243G of the Constitution.
This decision came after discussions with RERA functionaries about the nature of their function, and it was determined that GST is not applicable to them.
The last meeting of the GST Council was held on October 7, 2023, and discussions about the tax implications for RERA bodies arose after the lifting of exemptions for certain key regulatory bodies in India. It was highlighted that excluding RERA authorities from GST considerations could potentially reduce expenses for both developers and homebuyers in the residential real estate sector. Therefore, a clarification from the GST Council on this matter would be significantly beneficial for the sector.