Festive Cheer: GST Cuts to Boost Housing Market
The Indian government has reduced GST rates on certain products, potentially increasing consumer purchasing power and boosting housing demand. CREDAI believes this will lower construction costs and enhance property sales. The association advocates further tax reductions to alleviate the real estate sector’s overall tax burden.
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The Indian government's recent decision to reduce GST rates on various construction materials is poised to invigorate the housing market, as noted by CREDAI, a prominent real estate association in the country.
With a membership of 13,000 realtors, CREDAI expects construction costs to decline as a result of the lowered GST rates on cement and other materials. This reduction comes amid broader economic measures, including tax incentives and repo rate cuts, which are anticipated to drive housing demand during India's festive season.
However, CREDAI President Shekhar Patel emphasizes the need to address the real estate sector's overarching tax burden, advocating for adjustments in the definition of affordable housing to reflect market conditions better. The ongoing conference, drawing over 1,000 members nationwide, highlights the industry's unified call for further tax rationalization.
(With inputs from agencies.)
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