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GST Council Approves 5% Rate For Under-Construction Properties:

Courtesy/By: Sakshi Shukla | 25 Feb 2019

A 5 percent GST on under-construction properties will make a “world of difference” for the properties whose construction was in progress, says Niranjan Hiranandani, the Managing Director of Hiranandani Group. He said that the current change in rates brings clarity on input tax credit and other issues at the time of occupation. Chetan Shah, the Chairman and Managing Director of Marathon NextGen Realty said that while the rate cut is a good move what happens from here till Apr. 1 2019 is the issue. “.. there will be people who will unnecessarily wait till March 31. they should have made this (rate cut) applicable immediately from tomorrow itself.”

Hiranandani expected a cut in the GST on cement. “That needed to happen since cement is a big factor in infrastructure and housing.” Costs needs to be controlled, in terms of cement and other elements that go into making a product so that the input credit, which gets lost, is actually reduced so that “true costs can be passed on by the developers,” Shah said.

Courtesy/By: Sakshi Shukla | 25 Feb 2019