GST, Rera bump up realtors' woes

Home sales in the top ten regions, including Mumbai, NCR and Kolkata, have declined at a compound annual rate of 8% since 2011

Nearly four months after implementation of goods and services tax (GST), developers still find themselves in a home-sales bind, unable to imbibe a tax that, according to them, increases their cost structure.

"The GST has come as a big burden for the industry. Now only completed properties or nearly completed properties are selling. Those under construction are not seeing many takers," said Vijay Wadhwa, chairman of Wadhwa group, one of the biggest developers in Mumbai.

Under-construction properties attract a GST of 12 per cent, but completed properties attract no levy.

"Both developers and buyers are waiting for the GST rates to come down.