6% Goods and Services Tax Housing With Input Tax Credit: NAREDCO
Goods and Services Tax Housing: National Real Estate Development Council (NAREDCO) Chairman said that a flat Goods and Services Tax (GST) rate of 6% with input tax credit for housing is a win-win situation for everybody.
Capping GST at the proposed rate will not only give a huge boost to GDP growth but also increase activity in the housing sector, which in turn will benefit both the government and the consumers.
Chairman NAREDCO and CEO DLF said that they are seeking a Goods and Services Tax Housing rate of 6% flat with input tax credit, as it will give a very big boost to the demand. The benefit would pass on to the buyer, and the government will get more taxes because of greater activity in the sector which will all be accounted for. The consumer would benefit, the government would benefit and all the other would benefit in terms of GDP growth, and employment.
The effective rate for housing projects of up to 60 sq. mt. is presently 8%. NAREDCO proposed a Goods and Services Tax Housing 6% for up to 60 sq. mt. flats in projects that are commissioned in collaboration with any of the schemes proposed by the government.
NAREDCO have made a request that this rate should be extended to all affordable housing projects of up to 60 sq. mt., whether in the private sector or whether in any partnership with any government agency.
Finance Ministry officials chaired a meeting with real estate developers over GST to be levied on properties owned by private developers. The meeting followed the 23rd GST Council meeting that was held earlier this month in Guwahati, where in it was decided that real estate would be brought under the ambit of the taxation scheme.
NAREDCO Chairman, Vice Chairman, President and Revenue Secretary, among others were a part of the meeting.
Source Link- http://www.india.com/news/agencies/6-gst-for-housing-sector-is-a-win-win-situation-for-the-industry-naredco-chairman-2657941/