Ail­ing real es­tate mar­ket may get GST in­ter­ven­tion...

DNA Sunday (Mumbai) - - STATE -

From p1

Ra­jesh Pra­jap­ati, chair­man of me­dia and PR for CREDAI, who was part of Fri­day’s meet­ing, con­firmed the devel­op­ment. Pra­jap­ati said that peo­ple are stay­ing away from in­vest­ing in prop­erty due to heavy taxes. “At 12 per cent GST, if the cost of a house is Rs 1 crore, buy­ers have to pay Rs 12 lakh as tax plus 6 per cent stamp duty and reg­is­tra­tion, which means s/he ends up pay­ing Rs 1.20 crore. This is a huge amount, and it meant un­der­con­struc­tion real es­tate mar­ket was fac­ing trou­bled times. We de­manded a re­duc­tion in GST, and we hope the gov­ern­ment takes this pos­i­tive step that will re­vive the stag­nant un­der-con­struc­tion mar­ket,” Pra­jap­ati said.

CREDAI has also called a de­vel­op­ers’ na­tional meet­ing in Delhi on Fe­bru­ary 13 and 14, which may be ad­dressed by Prime Min­is­ter Naren­dra Modi. Sources said that the Cen­tre may make the an­nounce­ment of slash­ing GST rates be­fore this meet­ing.

“BJP wants to take credit for this and work it to its ben­e­fit elec­torally. So ev­ery­thing has been done as per the elec­tion’s sched­ule. But we don’t have any­thing to do with the pol­i­tics. We are just con­cerned about get­ting our re­lief,” said an­other de­vel­oper, re­quest­ing anonymity.

Pra­jap­ati, who is also the pres­i­dent of CREDAI MCHI, Raigad re­gion, said Goyal had ad­mit­ted there is a huge gap be­tween lev­el­ling GST on a fin­ished prod­uct and an un­der-con­struc­tion project. “We are re­ally hop­ing for some pos­i­tive devel­op­ments ahead of the elec­tions,” he said.

An­other de­vel­oper who at­tended the meet­ing, how­ever, said that if tax on un­der-con­struc­tion houses is re­duced, the gov­ern­ment may level GST on ready pos­ses­sion flats as well. “The fi­nance min­is­ter didn’t clearly spell out how the GST will be im­ple­mented on ready pos­ses­sion flats. Also, we cur­rently get re­bate as an in­put credit cost, which may not be the case once the tax is re­duced to 5 per cent. The move of re­duc­ing GST may also drill a hole in our al­ready tat­tered pock­ets,” a se­nior de­vel­oper from South Mum­bai said.

Full re­port on dnain­dia.com

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