Affordable Housing Still Needs Lower 5 Percent GST Rate

The PHD Chamber of Commerce and Industry recently asked the GST council to lay some rest over the GST rate on the affordable housing. Currently, the housing schemes are accompanied by 8 percent GST on the chamber demands a lower 5 percent instead.

Chamber’s Vice President, D K Aggarwal stated that the land should be identified and must be complied with the regulation so that the builders can go ahead and build affordable housing units with the help of government including subsidies and various other benefits.

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The reason behind dowsing the GST rate is that it would further bring the reason for affordable housing on the table. The target to provide everyone with affordable housing will be hurt by the 8 percent tax rate and thereby it was suggested to bring it down to 5 percent.

National Affordable Housing Summit-2018, held under the direction of PHD Chamber of Commerce and Industry, is the event where this tax rate deduction was initially discussed by the senior officials.

Earlier the tax rates were 12 percent which was further reduced to the 8 percent. Now the builder’s community is coming up in front to further explain the tax rate pressure on the idea and application of affordable housing.

It is said the affordable housing schemes are now picking up the pace and due to the still higher 8 percent GST rate, there are some roadblocks to its implementation. The reduced GST rates will definitely help in lowering downland rate, amount of stamp duty.

Some of the prominent officials were present at the event including Chief Operating Officer, Strategic Consulting, India and Sri Lanka, JLL India, A Shankar; Co-Chairmen, Housing and Urban Development Committee, PHD Chamber, Anuj K Khanna and Pyush Lohia along with its Principal Director, Dr Ranjeet Mehta.