Builders and traders in the city have welcomed the GST council’s move to reduce the Goods and Service Tax rates on under construction properties.
Vidarbha Taxpayers Association (VTA) has said that it welcomes this GST rate cut on real estate to 5 per cent on non-affordable and 1 per cent on affordable housing without input tax credit. This will bring a big relief to the homebuyers and help minimise, the demand mismatch gap.
VTA Secretary; Tejinder Singh Renu said, however, we believe that entire sector should be included in composition scheme, because mostly buildings are constructed with mixed user and in such cases the commercial user construction will be treated seperately thereby triggering complications and misinterpretation which causes legal hassles later thus increasing litigation in future.
Restricting 80% of purchases with GST in real estate sector is absolutely perfect as we strongly believe that our economy should 100% move towards white economy which will bring everyone on one platform thereby generating fare competition.
Such reduction of GST on real estate housing sector will surely benefit homebuyers and will also deliver much required boost to real estate industry.
Secretary of The Wholesale Grain and Seeds Merchant Association; Pratap Motwani too has welcomed the decision.
The previous rates of 12 per cent GST on under construction property and 8 per cent of stamp duty were a huge amount putting a heavy burden on the buyers, Motwani said. The decision to slash the rates will certainly provide respite.
He has further urged the Union Finance Minister and Bihar Chief Minister to remove the 5 per cent GST on chana dalia and branded pulses. “We have been raising this demand for quite sometime now, however, the GST Council has not taken any decision so far. We would once again write a letter to pursue a deman are hopeful for a positive decision,” Motwani said.