NEW DELHI: The GST Council is likely to consider lowering GST on under-construction flats and houses to 5 per cent in its meeting next month, an official said.Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.However, GST is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.An official said that this 12 per cent GST rate ideally would have been partially offset by way of taxes paid on inputs by builders and hence the actual incidence of GST on under-construction home buyers would have beenÂ around 5-6 per cent. However, builders are not passing on the input tax credit (ITC) benefit to consumers."One of the proposals before the Council is to lower the GST rate to 5 per cent for builders who purchase 80 per cent of inputs from registered dealers," an official said. The official said that currently builders are paying for the inputs for construction in cash and are not passing on benefits to consumers and hence, there is a need to bring them to the formal channel.Major construction material, capital goods and input services used for construction of flats and houses attract 18 per cent GST, while cement attracts 28 per cent tax.Prior to GST rollout, under-construction housing projects attracted 4.5 per cent service tax and a value added tax (VAT) of 1-5 per cent depending on the state. Also inputs used in construction attracted 12.5 per cent excise duty in addition to 12.5-14.5 per cent VAT. Besides, entry tax was also levied on the inputs.After adjusting for credits on inputs used, the effective per-GST tax incidence on such housing property was 15-18 per cent.The finance ministry has time and again asked real estate dealers to pass on GST rate cut benefits to buyers, but to no avail.Briefing reporters after the GST Council meeting on Saturday, finance minister Arun Jaitley had said that builders can adjust some portion of the 12 per cent GST against the taxes paid on inputs like cement which attract 28 per cent levy."The potential homebuyers feel they are not getting benefited under GST. Certain proposals have come before the Council and the law and fitment committee will look into the matter and the matter will come up in the next council meeting. There was a total consensus that something needs to be done," Jaitley had said.Currently, in case of affordable housing projects like Jawaharlal Nehru National Urban Renewal Mission , Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing schemes of state governments, GST is levied at 8 per cent, which can be adjusted by builders against its accumulated ITC.The finance ministry had earlier this month said that forÂ such affordable housing projects, after offsetting ITC, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.