Rationalise,reduce GST to achieve twin objectives on housing'

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

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

"Of course, we will pass itonto 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 foreach affordable housing unit.

He saidthere should be more financial support from banks to make the affordable housingscheme 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 provisionsof the Act.

"Regulation isneeded, 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 notbe made mandatory for registration, whereas the RERA complaint fee should be increased to Rs