The proposed implementation of the Goods & Services Tax will not escalate prices of real estate, especially affordable housing, said M Venkaiah Naidu, Minister for Urban Development, Housing and Poverty Alleviation. Mr Naidu was addressing a two-day CREDAI conclave in New Delhi.
Mr Naidu said that property prices, especially of affordable housing, will not increase under the new tax regime. According to Mr Naidu, “the government has exempted affordable housing from service tax, and my ministry is addressing the need to continue this exemption under the 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.” He said, “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.”
Mr Naidu said that to regulate land prices, which are skyrocketing across India, developers must incorporate new practices.
According to Naidu, the Goods & Services Tax will create an ecosystem which will emphasize credibility, accountability, swift approvals and transparency. The new Benami Transactions (Prohibition) Amendment Act will further help achieve this vision, the minister said.
