30 March, 2017

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Government Has No Information About Impact of GST on Real Estate Says Govt

Government Yet To Understand the Impact of GST on Real Estate
There is no information available with the Ministry of Housing and Urban Poverty Alleviation about the impact of GST on the prices in the real estate sector, the government today said.
In a written reply to Lok Sabha, Minister of State for Housing and Urban Poverty Alleviation (HUPA) Rao Inderjit Singh said “No such information (about the impact of GST on the real estate sector) is available with the Ministry”.
HUPA is the nodal ministry for implementing the affordable housing scheme – Pradhan Mantri Awas Yojana (Urban).
Real estate experts feel that negative impact of GST on the sector may derail Modi government’s flagship programme which aims to provide housing to all by 2022 in the urban areas.
To make the houses more affordable, Singh said the Ministry has suggested to Finance Ministry to continue with the exemption of service tax for affordable housing under Goods and Services Tax (GST).
Singh, however, said the response of Finance Ministry is awaited.
He said the ministry has also requested the state and UTs to consider rationalisation or waiver of stamp duty for affordable housing projects.
The minister informed that Madhya Pradesh government is providing reduced rates for stamp duty to Economically Weaker Sections (EWS), Lower Income Group (LIG) and Middle Income Group (MIG) for houses made by Development Authorities and Housing Board.
Haryana government has rationalised stamp duty from 12.5 per cent to five per cent. Further a reduction of two per cent stamp duty is being granted in case of women and a complete exemption in case of transfer of property between family members.
No stamp duty for affordable housing is being charged in Andhra Pradesh, he said.
Economic Times

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