Real Estate body demands reduction in GST to achieve housing objectives


Devdiscourse News Desk | Visakhapatnam | Updated: 05-10-2018 20:19 IST | Created: 05-10-2018 20:01 IST
Real Estate body demands reduction in GST to achieve housing objectives
  • Country:
  • India

The Confederation of Real Estate Developers' Associations of India Saturday demanded that the Union Government rationalise and reduce GST to achieve its twin objectives of housing for all and affordable housing. 

CREDAI president Jaxay Shah said that GST, coming as it did close on the heels of demonetisation, was proving to be too disruptive for the sector. 

"Of course, we will pass it on to the customer. But we feel it should be rationalised and reduced," he said, addressing a press conference here. The executive committee and governing council meeting of CREDAI was held in the city Saturday. 

Shah thanked the government for giving the sector infrastructure status and also providing a subsidy of Rs 2.60 lakh each affordable housing unit. 

He said there should be more financial support from banks to make the affordable housing scheme successful. 

"We fully support the Government's goal of providing quality housing for all by 2022," he said. He suggested that GST be brought down to five per cent for a site of 500 square metres and below and eight per cent for those above 500 square meters. 

This would go a long way in helping small-scale developers in Tier II and Tier III cities, Shah said. On the Real Estate Regulation Act (RERA), he said CREDAI was in no way trying to dilute provisions of the Act. 

"Regulation is needed, and we welcome RERA, though it may be disruptive initially. But there should be a last-mile approach to the problem," he said. Under RERA, insurance should not be made mandatory for registration, whereas the RERA complaint fee should be increased to Rs 25,000 to avoid frivolous complaints against developers. 

Shah said CREDAI would build 14,500 affordable housing units across Andhra Pradesh in places like Vijayawada, Visakhapatnam and Kurnool to meet the government's objective of housing for all by 2022. CREDAI national president-elect Satish Magar said that the body, through its thought leadership platforms, has led the industry through its transitory phase for the past one and half years. 

"CREDAI has been relentlessly working towards the development of the Indian real estate sector and government initiatives have been instrumental in setting a strong foundation for ushering dynamic growth in the industry," he added. 

Established in 1999, CREDAI is the apex body for private real estate developers in India, representing over 12,000 developers in 23 states and 203 city chapters across the country.

(With inputs from agencies.)

Give Feedback