GST Rate Cut: Real Estate Industry Outlook

Absence of input tax credit will probably result in increased prices for the customers: Rohit Poddar, Poddar Housing and Development Ltd

www.newsbarons.comThis reduction in the GST rate shows the pro-activeness of the government on addressing the issues the real estate sector is going through since past few months. The new twin definition for the affordable houses have given a better clarity to the developers under this segment although absence of input tax credit will probably result in increased prices for the customers. The GST rationalization for under-construction properties is a comprehensive move which will help the developers in liquidating their unsold inventories which will be an added boost for the sector and the consumers as well.”

An added boost for home buyer sentiments: Amit B. Wadhwani, Sai estate Consultants Chembur Pvt Ltd

www.newsbarons.comThe revised GST rates will be an added boost for home buyer sentiments across the sector especially in concurrence with the recent budget announcement and alteration in the RBI repo rate. Rationalizing the GST for affordable houses is a levelheaded move by the council, this will further enhance the purchasing power of buyers in alignment and will help to achieve the “Housing For All” mission. While this move will aid the Lower Income Groups and Economically weaker sections of the society, we are yet to understand just how much will the realty sector or the builder community will benefit from this as the revised rates come with no Input Tax credit and we are still expecting some revision on GST rates for cement. However, in the light of yet another decision that could be a fillip to the real estate sector, moving ahead, the govt must ensure they work towards making potential land parcels & due permissions available.

A step in the right direction: Chintan Sheth, Ashwin Sheth Group

www.newsbarons.comThe GST Rate cut to 5% on under construction properties will significantly help in the revival of the real estate sector. While the government has taken several initiatives to boost the market, more sops and reforms are required and GST is a step in the right direction. With the reduced prices that will benefit homebuyers, demand will improve and attract investments from NRIs, first-time homebuyers, and the fence sitters. It is advisable to purchase a home now and get your money’s worth.