Credai's Plea: Reconsider GST on Additional FSI Charges

Credai, the realty industry's apex body, has urged the Indian government to exempt additional FSI charges from GST, warning that the proposed 18% tax could spike housing costs by 10%, hindering supply and demand. They argue such financial burdens could destabilize the real estate market.

Credai, the leading association in the real estate industry, has called on the government to avoid imposing GST on charges paid by realty firms to development authorities for extra Floor Space Index (FSI). The association believes this will adversely affect housing demand.

In a formal request to the finance minister, Credai emphasized the potential negative impacts of an 18% GST on additional FSI charges. They argue this tax would significantly increase project costs and elevate housing prices by approximately 10% nationwide.

Credai President Boman Irani stressed that FSI charges form a vital component of project expenses and imposing GST could deter housing supply and demand. Irani urged for a GST exemption to prevent financial instability in real estate projects.

(With inputs from agencies.)