NAREDCO proposes 6% GST rates for housing sector
National Real Estate Development Council (Naredco) has proposed a flat Goods and Services Tax (GST) rate of six percent with input tax credit for housing sector.
“We are seeking a rate of six percent flat with input tax credit, as it will give a very big boost to the demand. The benefit would pass on to the buyer, and the government will get more taxes because of greater activity in the sector which will all be accounted for,” National Real Estate Development Council (Naredco) Chairman and CEO DLF, Rajeev Talwar told the media here.
Finance Ministry officials chaired a meeting with real estate developers over GST to be levied on properties owned by private developers. The meeting followed the 23rd GST Council meeting that was held earlier this month in Guwahati, where in it was decided that real estate would be brought under the ambit of the taxation scheme. Naredo Chairman, Rajiv Talwar; Vice Chairman, Pravin Garg; President, Niranjan Hiranandani; and Revenue Secretary, Hasmukh Adhia, among others were a part of the meeting.
Rajeev Talwar on Tuesday said that a flat Goods and Services Tax (GST) rate of six percent with input tax credit for housing is a win-win situation for everybody. According to Talwar, capping GST at the proposed rate will not only give a huge boost to GDP growth but also increase activity in the housing sector, which in turn will benefit both the government and the consumers.
“The consumer would benefit, the government would benefit and all of us would benefit in terms of GDP growth, and employment,” he added.
The effective rate for housing projects of up to 60 sq. metre is presently eight percent. Naredco proposed a GST of six percent for up to 60 sq. metre flats in projects that are commissioned in collaboration with any of the schemes proposed by the government.
“We have made a request that this rate should be extended to all affordable housing projects of up to 60 sq. metres, whether in the private sector or whether in any partnership with any government agency,” Talwar added.