“Housing for All and PMAY to get boost with reduction in GST under CLSS,” says CREDAI – MCHI President Mayur Shah
The Goods and Services Tax (GST) council has recently reduced the rates of GST for homes purchased under the Credit Linked Subsidy Scheme (CLSS). For under-construction homes that form a part of CLSS will now be charged GST at 8 percent instead of 12 percent, a cut of 4 percent. This decision has been welcomed by CREDAI-MCHI President Mayur Shah.
Mayur Shah said in a statement, “This decision will give a boost to providing affordable housing to people of India under Housing for all and Prime Minister Awas Yojna and other such programs. Credit-linked subsidy together with GST benefit will fulfil the dreams of a large section of the population which aspire to own a home and will give a boost to the housing sector undertaking such affordable housing projects.”
According to Shah, the GST council’s decision to extend concessional GST of 8% to in situ slum rehabilitation project will help faster rehabilitation of slum dwellers and will encourage developers to participate in these schemes. “CREDAI National also welcomes concessional rate of GST to those schemes where 50% of FSI/FAR is used in building homes of carpet area not more than 60 Sq Mtr. In such schemes, Flats/Houses of carpet area up to 60 Sq Mtr will now be able to enjoy a reduced rate of GST @ 8%,” he added.
Shah also welcomed the council’s decision to change the point of taxation with regard to the supply of development rights. He said, “This will enable closure of Joint development/redevelopment projects, especially in metro cities. CREDAI also welcomes the simplification of GST wherein GST council has clarified the applicability of 1/3rd land deduction on housing projects undertaken on leasehold land.”
“CREDAI would like to express its gratitude to GST council and Authorities for their continued engagement with us along with our knowledge partner Economic Law Practice (ELP) to address industry issues and considering our suggestions,” he said.