PHD Chamber Urged GST Council For 5% GST On Affordable Housing

GST slab staying onto 8 percent for affordable housing would partly defeat the efforts to provide for housing for all by 2022 in this category, therefore, it has become imperative to reduce it at 5 percent slab.

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PHD Chamber Urged GST Council For 5% GST On Affordable Housing

PHD Chamber of Commerce and Industry urged the GST Council to consider further reduction of GST at a slab of 5 percent from prevailing 8 percent for affordable housing, arguing that applicability of infrastructure status on affordable housing would only serve the intended cause.

Read Also: CREDAI Demands Reduction In GST, Bank Financing For Land Purchase

With GST slab staying onto 8 percent for affordable housing would partly defeat the efforts to provide for housing for all by 2022 in this category, therefore, it has become imperative to reduce it at 5 percent slab, contended the Chamber.

The suggestion was made at the National Affordable Housing Summit-2018, held under aegis of PHD Chamber of Commerce and Industry in which it was also felt that States should seriously deliberate to further rationalise the Stamp Duty, especially for real estate developers engaged in affordable housing schemes so that such houses really becomes “Affordable” in real sense.

Read Also: GST Council’s Several Recommendations To Promote Affordable Housing

The Chamber’s Vice President, D K Aggarwal who presided over the Summit also argued that land parcels should be identified within the periphery of large towns for making affordable houses with considerable subsidies by government concern for those builders that are wanting to build affordable housing units.

It also appreciated the recent decision of the GST Council which reduced GST for affordable housing from earlier 12 percent to 8 percent slab, adding that it needs further rationalization keeping in view the needs of the affordable housing scheme so that builders are attracted towards the scheme which already provides for considerable interest subsidies.

Read Also: Govt Asked Builders Not To Take GST Charge From Affordable Housing Buyers

The affordable housing scheme has picked up a fair momentum which requires being accelerated for which various strategies would work efficiently and that include reduced rates of land, a fair amount of stamp duty and further rationalised GST slab among others.

Source Link- http://www.asianage.com/.

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