CREDAI Demands Reduction In GST, Bank Financing For Land Purchase

Banks should provide finance to purchase land for affordable housing projects, and the area norm should be removed for the Middle-Income Group (MIG) so that more people buy homes under government subsidy scheme CLSS (Credit Linked Subsidy Scheme).

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CREDAI Demands Reduction In GST, Bank Financing For Land Purchase For Low-Cost Homes

CREDAI (Confederation of Real Estate Developers’ Associations of India) demanded reduction in GST (Goods & Services Tax), easier bank financing for the purchase of land to develop affordable housing and single-window clearance for approval of real estate projects to boost the sector.

Read Also: 20% Homes For Poor Mandatory For Real Estate Developers: MHADA

Real estate sector faced a triple tsunami in form of demonetisation, GST and the RERA, CREDAI President said the industry is facing a “critical moment” and he urged the Ministry of Housing and Urban Affair to take up these issues with the government on its behalf.

Banks should provide finance to purchase land for affordable housing projects, and the area norm should be removed for the Middle-Income Group (MIG) so that more people buy homes under government subsidy scheme CLSS (Credit Linked Subsidy Scheme). GST rates should be rationalised for the growth of this sector.

Read Also: Silver Lining In Real Estate Sector: Affordable Housing & Its Challenges

Like affordable housing, GST should be 8 percent for the entire sector to boost demand for under-construction flats. The effective GST rate is 12 percent after land abatement and there is no GST on completed flats.

CREDAI also raised issues related to delay in projects approvals, especially environment clearance. India’s ranking in ease of doing business will further improve if the government decides to have single-window clearance.

Read Also: Mumbai Unsold Apartments Soared To 1.09 Lakh, Reason: Unaffordability

Under the new law RERA that became effective from May last year, CREDAI president said developers and brokers have been made accountable but not the government authorities.

Source Link- http://www.business-standard.com/.

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