Demand to reduce GST from 5 percent to 1 percent
CREDAI, an organization of real estate companies, on Monday demanded from the government 100% tax exemption on home loan interest under the Income Tax Act. CREDAI has made this demand to boost the demand for houses for affordable and middle income group people. CREDAI, which is celebrating its 25th foundation day, also announced to open 1,000 schools in the next one year. CREDAI (Confederation of Real Estate Developers Associations of India) has also demanded that the limit for affordable housing should be increased from the current Rs 45 lakh to at least Rs 75-80 lakh.
Demand to reduce GST from 5 percent to 1 percent
CREDAI Chairman Boman Irani, on the occasion of the 25th Foundation Day, also suggested that the government should impose 1 percent GST on under-construction houses costing up to Rs 75-80 lakh to boost housing demand for affordable and middle income groups. Needed Currently, under-construction affordable houses priced up to Rs 45 lakh attract 1 per cent GST. Whereas under construction houses costing more than Rs 45 lakh attract 5 percent GST. Companies cannot avail Input Tax Credit (ITC).
The definition of affordable housing was given in the year 2017
“Affordable housing was defined in 2017,” he said. In this, a limit of Rs 45 lakh was fixed. If we consider the annual inflation since 2017, this limit needs to be revised to Rs 75-80 lakh.” Irani said if the definition of affordable housing is changed then potential home buyers will get the benefit of lower GST. Will get benefit. The CREDAI Chairman said that the government should also consider other options and completely remove the price limit in the definition of affordable housing. Instead, the only criteria should be carpet area of 60 meters in metros and 90 meters in medium and small cities.
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