CREDAI-MCHI Urges GST Review for Real Estate Sector

CREDAI-MCHI, the apex body of the real estate industry in the Mumbai Metropolitan Region (MMR), has requested a comprehensive review of the GST framework affecting redevelopment, affordable housing, and rehabilitation projects. They argue that current GST regulations place undue financial burdens on developers and homebuyers, calling for greater flexibility in tax rates.

In a formal submission to the GST Council, CREDAI-MCHI, the apex body representing the real estate industry in the Mumbai Metropolitan Region (MMR), has called for a comprehensive review of the Goods and Services Tax (GST) framework affecting the sector.

The organization highlighted concerns regarding the GST's impact on redevelopment, affordable housing, and rehabilitation projects. Mumbai, which faces significant housing challenges, has over 14,000 dilapidated buildings and 70 lakh residents living in slums. Redevelopment plays a crucial role in tackling these issues by increasing housing stock and improving living conditions.

Mr. Domnic Romell, President of CREDAI-MCHI, emphasized the financial strain caused by current GST regulations: “The GST implications on redevelopment and rehabilitation projects have placed an undue burden on both developers and homebuyers.” He urged the government to reconsider these charges, particularly for projects involving slum dwellers and residents of unsafe buildings.

CREDAI-MCHI also raised other issues such as GST on Transfer of Development Rights and the Rs 45 lakh limit for Affordable Housing benefits. The organization advocates for greater flexibility in GST rates to ensure cost savings are passed to homebuyers.