GST Council meeting, rate cut on Real Estate – Mr. Farshid Cooper; Managing Director at Spenta Corporation

New Delhi, March 01, 2019: Mr. Farshid Cooper; Managing Director at Spenta Corporation said ” The 33rd GST council meeting was positive for homebuyers and in turn for developers. The issues regarding transaction costs and affordability which have plagued the sector over the last 18 months or so has been addressed. With the reduction in the rates of under construction buildings to 5% from 12% the developer fraternity will be relieved as this could potentially be the catalyst to boost demand for under construction homes. Further, the reduction in rates from 8% to 1% for the affordable housing sector will help the sector grow and go a long way in achieving the honorary prime minister’s vision of housing for all by 2022. Also, doing away the ITC (Input Tax Credit) will make GST compliance for easier and more cost-effective for developers. That said, without ITC developers will now have to deal with increased cost of 18% (which is the GST rate for most construction-related items) and account for the same when planning cash flows and project costs.”

Corporate Comm India(CCI Newswire)