Maharashtra's Finance Minister proposes GST reduction on redevelopment projects

19-Sep-2019    |    Source:    https://www.moneycontrol.com

 

The Financial Capital’s Real Estate Sector Receives support from Maharashtra’s Finance Minister as he proposes reduction in the GST levied on the redevelopment of old, dilapidated buildings and slums from 5% to 1%. Also he suggests an increase in threshold limit for affordable homes and benefit of the input tax credit in the Mumbai Metropolitan Region (MMR) on September 11, reported by DNA.

The Minister argued that the state government had planned to provide affordable houses near commercial areas in MMR. However sticking to the guidelines of providing an area of up to 60 sqm, with a ceiling of Rs 45 lakh is tough and therefore the ceiling should be raised. GST council is also asked to allow the benefit of input tax credit (ITC).

Ramesh Prabhu, Chairman of the Maharashtra Society Welfare Association, said if the Finance minister's suggestions are accepted by the GST Council, it will provide a leg-up to the realty sector and also for slum redevelopment. "Currently, it is not clear whether GST is applicable on the redeveloped portion given to existing slum dwellers. This clarification will also help developers," Prabhu said

Mugantiwar also accepts that reduced GST might be concern for the council, but good quality housing at affordable rates will provide favourable environment. 


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