AP real estate grapples with poor demand, GST
As India marks the second year of the introduction of the Goods & Services Tax (GST), also dubbed the “Good & Smart Tax” by government figures, real-estate developers in Andhra Pradesh are grappling with demand that is showing no signs of picking up owing to the new tax, industry sources said.
“There has been no announcement of major new projects in the major cities in AP like Visakhapatnam, Vijayawada, Nellore or Tiru pati, because of the GST. The GST rate is 12% on the cost of an apartment. Added to this is the 7% registration fee,” says Are Siva Reddy, president of the Andhra Pradesh wing of the Confederation of Real Estate Developers’ Association of India (Credai).
Elsewhere in the country, too, the GST has had a deleterious impact on the real-estate sector, says Anuj Puri, chairman of the Mumbai-based Anarock Property Consultants, a real-estate advisory firm.