21.10.2023: CREDAI appeals for revision in GST

In a memorandum presented by Gugan Illango, president of CREDAI, Coimbatore, to Union Finance Minister Nirmala Sitharaman, the association said the Government of India had been giving a lot of importance to affordable housing to enable people in the lower and middle income segments to realise their dream of owning a house.

Under such circumstances, GST rates for developers is fixed at 5 per cent in 2019 without Input Tax Credit (ITC). While the cement is taxed at 28 per cent, most other construction materials and labour are taxed at 18 per cent. This amounts to a GST of around 11 per cent being borne by the developer. Hence, CREDAI Coimbatore requested that the GST rate be fixed suitable with the benefit input credit. This will result in substantial reduction of ₹150 to ₹200 per sq. ft. for home buyers, according to the memorandum.

Source: The Hindustan Times 

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