Developers have little to cheer from GST cut on under-construction houses

Volumes could see an uptick, given the benefits for consumers and lack of pricing power for developers

After cheering the Goods & Services Tax (GST) Council’s move on the GST for under-construction property in early trade, realty stocks ended the day in the red, with the BSE Realty Index shedding nearly a per cent. 

On Sunday, the Council reduced tax by 700 basis points each on under-construction property for affordable housing projects as well as for other projects. The government has hoped the same would bring some relief to the beleaguered sector grappling with issues of high inventory, poor demand, delayed projects, and high debt. 

The situation is not only affecting the listed realty players, which have