Realtors want GST for sector be lowered to 6 per cent

NEW DELHI: The National Real Estate Development Council (Naredco) has urged the government to reduce the goods and services tax (GST) by six per cent to real estate sector to increase the demand for new homes.

On Tuesday, the real estate builders' organization said that the GST 6% GST with the inset tax credit would be a win-win situation for all, with Finance Secretary Hashim Adiya and State Minister for Finance and Shipping P. Radhakrishnan. Participants

Naredco chairman Rajeev Talwar said that 6% GDP would encourage capping to encourage investment under construction, which is otherwise waiting to save 12% GST for complete properties. "Buyers stand to benefit because the developers give benefit to the buyers. The government also benefits, because it will raise more taxes due to increase in demand. All this is a win-win situation."

According to Enedo's President Niranjan Hiranandani, the industry has urged the government to increase the land limit from 50% to 30%, because the cost of land is the most important part of any real estate project expenditure.

Builders have claimed that the property of the compulsory property between the tax rate and the property under construction increased the problem.

"The GST rate for GrowthRate under construction is 12%, while it is 0% in ready-to-do properties. It makes comparison-ready assets attractive with the under-construction properties. The reduction in fresh and continuous demand,"Naredco  said.