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CREDAI seeks cut in GST; bank financing to buy land for low-cost home

Press Trust of India  |  New Delhi 

Realtors' apex body today demanded reduction in GST, for purchase of land to develop and single-window clearance for approval of projects to boost the sector.

Stating that the sector faced triple whammy in form of demonetisation, GST and the new realty law, said the industry is facing a "critical moment" and he urged the to take up these issues with the government on its behalf.

"We need proper treatment for this industry. We are into nation building. We are the safest investment industry. We have 3-4 major demands," Shah told reporters here.

Banks should provide to purchase land for projects, he said, adding that the area norm should be removed for group, so that more people buy homes under government subsidy scheme CLSS (credit-linked subsidy scheme).

On GST (Goods and Services Tax), he demanded that rates should be rationalised for the growth of this sector.

Like affordable housing, GST should be 8 per cent for the entire sector to boost demand for under-construction flats. The effective GST rate is 12 per cent after land abatement and there is no GST on completed flats.

said there should be proper land abatement as prices of land differ for city to city. CREDAI suggested that the government can give abatement on the basis of circle rate for each city.

The association also raised issues related to delay in projects approvals, especially environment clearance.

It said India's ranking in ease of doing business will further improve if the government decides to have single-window clearance.

Under the new law RERA that became effective from May last year, Shah said developers and brokers have been made accountable but not the government authorities.

CREDAI, which has about 12,000 builder members in 23 states and 178 city chapters, is holding two-day conclave here and about 600 developers are participating in the event.

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

First Published: Wed, March 14 2018. 21:50 IST