The proposed implementation of Goods & Services Tax will not increase prices of real estate, especially of affordable housing, said M. Venkaiah Naidu, Minister for Urban Development, Housing and Poverty Alleviation.
“GST will not increase prices, especially not for affordable housing. We have already exempt affordable housing from service tax, and my ministry is addressing the need to continue this exemption under GST. We have recommended to the Ministry of Finance to tax the sector at a rate which is revenue neutral and not at a higher tax rate,” a CREDAI release quoted Naidu as saying. The minister was addressing the realtors’ apex body’s two-day conclave in New Delhi.
“Input tax credit will be available, thus creating a huge incentive to bring all transactions in the sector within the formal system. We are addressing the need to rationalise stamp duty, and are asking for waiver of stamp duty for affordable housing,” he said.
Read more: The Economic Times
