CREDAI expresses concern over proposed 18% GST on Floor Space Index premiums
2 days, 2 hours ago

CREDAI expresses concern over proposed 18% GST on Floor Space Index premiums

The Hindu  

The Confederation of Real Estate Developers’ Associations of India has expressed deep concerns over the government’s proposal to impose an 18% Goods and Services Tax on Floor Space Index and additional FSI premiums. The proposed GST on FSI premiums, they warned, could further escalate property prices by 7-10%, jeopardising affordable housing projects. “The proposed GST could make homeownership more expensive for middle-class families, undermining the government’s vision of inclusive housing,” they cautioned, adding that it could potentially slow down the real estate sector, a major contributor to India’s GDP and employment. To mitigate the potential negative impact, the CREDAI has suggested several measures, including reclassifying FSI premiums as government-granted instruments rather than commercial services, enabling developers to claim Input Tax Credit on GST paid for construction materials and FSI premiums, ensuring future GST clarifications are applied prospectively to avoid retrospective taxation, and exempting affordable housing projects under the Pradhan Mantri Awas Yojana from the GST to enhance housing affordability.

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History of this topic

Cap on affordable housing should be increased from ₹45 lakh to ₹80 lakh to benefit home buyers: Credai
4 weeks ago

Cap on affordable housing should be increased from ₹45 lakh to ₹80 lakh to benefit home buyers: Credai

Hindustan Times  

Real estate body CREDAI, which is celebrating its 25th foundation day, has said the cap on affordable housing be increased from ₹45 lakh to ₹75- ₹80 lakh and suggested that 1% GST be charged on under construction housing units priced in the range of ₹75 to ₹80 lakh. The government should charge 1% GST on under-construction housing properties, costing up …

GST Council may soon clarify tax exemption to RERA
9 months, 3 weeks ago

GST Council may soon clarify tax exemption to RERA

Hindustan Times  

The GST Council is likely to soon clarify that Real Estate Regulatory Authority will not be required to pay Goods and Services Tax, an official said. A meeting of GST Council, chaired by Union Finance Minister and comprising state ministers, is likely to be held before the imposition of Model Code of Conduct for the general election due in April-May. …

Budget 2024 expectations: Realty sector calls for policy tweaks, tax reliefs
11 months ago

Budget 2024 expectations: Realty sector calls for policy tweaks, tax reliefs

Live Mint  

Budget 2024 expectations: With Budget 2024-25 only days away, top real estate players lay stress on increased tax slabs and revised affordability caps in their wishlist. Acknowledging past reforms, Runwal called for an increase in the interest rate deduction cap to ₹5 lakh and a redefinition of affordable housing, particularly in metro cities. Additional proposals encompassing tax reliefs, single window …

Challenges amid changing trends in real estate
1 year, 3 months ago

Challenges amid changing trends in real estate

The Hindu  

The real estate sector has been grappling with a lot of challenges in the past few years. Even though real estate is the second biggest employment in India and contributes to 7% of the GDP, it still doesn’t have an industry status. Top banks and financial institutions have reduced their exposure to the real estate sector making it difficult for …

Budget 2023: Here’s what the real estate sector is expecting from FM Sitharaman
1 year, 10 months ago

Budget 2023: Here’s what the real estate sector is expecting from FM Sitharaman

Hindustan Times  

The Indian real estate market saw a strong comeback post pandemic with the residential sector picking up demand amidst healthy economic growth, a Mint report states. The real estate sector is looking forward to budget 2023 to drive the demand for housing through tax relief and lesser stamp duty According to Gurmit Singh Arora, national president of Indian Plumbing Association, …

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR
2 years, 1 month ago

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR

Live Law  

The Kerala Authority of Advance Ruling has held that affordable residential apartments attract 1.5% GST.The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. The 20 residential units in the project would qualify as "Affordable Residential Apartments" as …

Fact Check: No, 18% GST on house rent is NOT applicable to all tenants
2 years, 4 months ago

Fact Check: No, 18% GST on house rent is NOT applicable to all tenants

India Today  

If social media posts are to be believed, one now has to pay a Goods and Service Tax even for renting a house. Modi delivered in 2022 - 18% GST on house rent.” Modi promised in 2018 - Every Indian will have a house by 2022. It states that under the new system, 18 per cent GST will be charged …

Union Budget 2021: From GST reforms to tax breaks, here's what real estate sector is hoping for
3 years, 10 months ago

Union Budget 2021: From GST reforms to tax breaks, here's what real estate sector is hoping for

India Today  

For 38-year-old Pradyuman Singh, the year 2020 could not have come at a worse time. Now with the upcoming Union Budget, I hope that the real estate sector can see some revival and I can find genuine buyers," says Singh who is now venturing into F&B consultancy. "The long-awaited industry status to the real estate sector will greatly impact all …

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