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FICCI welcomes GST Council's decision to cut real estate GST rates

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FICCI welcomes further reduction in GST rates as a big boost for the Indian real estate sector that will help propel the demand in housing

FICCI has welcomed further reduction in GST rates which it considers as a big boost for the Indian real estate sector that will help propel the demand in housing. Sanjay Dutt, Chairman, FICCI Real Estate Committee and MD and CEO TATA Housing and TATA Realty and Infrastructure Ltd while applauding the move stated that the government has very timely assessed the need of the hour. The customers needed this relief. It will help unlock value from under construction projects, which is critical to restore confidence in the developers as much as the customers.

He further added that the extension of definition to housing prices within Rs 45 lakh will lift sales in this segment now falling in the affordable category across cities and help customers as well as developers not to mention encourage lenders allocate or make available more capital for this segment. The input tax credit is critical for the developers and many would get hit. The Government should reconsider this aspect, also the affordable segment will gain much needed focus with this policy.

Sanjay Dutt also expressed the need of similar decision on reducing the GST on Cement from 28% to single digits as it directly impacts the affordability of houses.

Rajeev Piramal, Co-Chairman, FICCI Real Estate Committee and Vice Chairman and Managing Director, Peninsula Land said, GST council's decision on reducing the tax rate on under-construction homes to 5% and significantly slashing the rate on affordable homes to 1% from 8% is a win-win situation for both developers and home buyers. The government's decision on expanding the scope of affordable housing is in sync with its vision of 'Housing for all by 2022'. We believe this move will encourage home buyer sentiments and will significantly boost the demand for affordable homes.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 25 2019. 12:10 IST