New Delhi, March 02, 2019: “Reducing the rate of GST from 12% with an input tax credit (ITC) on payments made for under construction buildings or ready to move in flats to 5% without ITC on non affordable houses and revising down from 8% to 1% on affordable housing segment is only a buyer centric move by government. However developers will be burdened with GST payments to vendors , suppliers , agencies and contractors and this will land up increasing cost further admidst the already shrinking margin in business due to dynamic policies implemented by government. In order to realise our Prime Minister’s dream of ‘Housing for all by 2022’, the ITC will have to continue or else it will put the entire tax burden on developers hitting the real estate down further. Developers have already got impacted due to NBFC crisis too apart from dynamic policies implemented in last three years . An increase from 30 sqmt to 60 sqmt for metros and from 60sqmt to 90 sqmt for non metros to be considered affordable housing will give a boost to the affordable housing segment as the developers will be able to to work on more margins across areas.”
Corporate Comm India(CCI Newswire)
