Venkaiah Naidu, the Union Minister of Urban Development has said that low budget houses should be exempted from service tax under GST. This will help in making sure that the price of such houses does not increase. In an event organized by the group of real estate companies, CREDAI, Naidu told the states to give relaxation in stamp duty for the affordable housing project and also make it rational for others. He even assured that price will not increase under GST and there will surely not be an increase in the affordable housing segment.
Naidu said that currently, the affordable housing segment will enjoy concession in service tax. He also said that his ministry has already pointed out the issue of providing this exemption to affordable housing segment under GST in front of the Finance Ministry. He too said that this segment has been given the status of infrastructure in the budget and this will help in the availability of cash among buyers.
Although there is no clear explanation for the fact that real estate sector comes under GST but the motto “One nation, one tax” will surely benefit this sector.
Possession to be offered on time:
Union minister has asked the builders to fulfill all the promises done by them to the home buyers and also provide possession on time. Companies related to land development demanded concession under the new realty law for their current schemes. Naidu expressed his concern on the skyrocketing prices of land for some cities and said that the prices have to be brought down so that they become cheaper for people.
The Minister said that the government is not asking the builders to do more, but to fulfill what was promised on papers only and the government will be with them. CREDAI Chairman, Irfan Razzaq has demanded that the new real estate (regulation and development) law should not be made applicable from the date of earlier date and should only be applied to new projects. This demand was made when the realty companies were not able to provide the housing units to their consumers from the past few years. This has made the buyers angry and many of them have their cases running in court.
The Minister claimed that Ministry is looking into all the issues and also on the current projects. The Minister has asked the builders to adopt digital transactions in order to bring more transparency in the sector. Regarding facilitation of business, Naidu said that the government is working towards quick clearance of real estate projects.