New Delhi, (1/3/2019): National Real Estate Development Council (NAREDCO) organized a press conference today at Le-Meredien in New Delhi. The objective of this conference is to welcome the government’s move to lower Goods and Services Tax (GST) on affordable housing from 8% to 1% and other housing from 12% to 5%.
NAREDCO is the apex body of Real Estate Sector, under the aegis of Ministry of Housing and Urban Affairs, Government of India. In the last meeting GST Council has announced the lowering of GST on real estate without input tax credit.
Speaking at the conference, NAREDCO President Niranjan Hiranandani said, “the reduction in GST rates from respective 12% and *% is definitely a delight to the home buyers improving their sentiments positively with the reduced tax burden. It will result in uptick in sales on under construction inventory with lowered GST rate across helping developers to revive the industry rolling. The fence sitters will now be enthused to come forward and book their dream homes which will result in increades home buying scenario and help reducing the existing inventories of the market”.
When asked about the benefits of the GST rate he said, while talking to Ten News that “this cut in GST Rates for under construction homes needs to be compounded with other positives available to the home seeker. This is also a part of positive process, we have some state governments levying lower stamp duty on affordable housing to just Rs 1,000. Income tax benefits are available, interest subvention is available, the PMAY scheme makes it easier for home seekers.