Developers have requested government to moderate land value in GST.

Developers have requested government to moderate land value in GST.

RM | June 17, 2017 | Saturday


New Delhi: Confederation of Real Estate developers association of India (CREDAI) has requested the government to adjust the moderation of land value in the new goods and services tax (GST) for betterment of home prices. Developers feel that for other sectors, GST comprises of other tax liabilities but for real estate sector, this does not eliminate multiple taxes.

Jaxay Shah, President, CREDAI has said that developers will have bear all the taxes including stamp duty which is about 5-8% of immovable property and 12% GST on land values which will ultimately affect the real estate market.

Shah also highlighted that it may not be a good idea to avail tax credit under GST thus it depends whether the developer bears the cost himself or pass on the burden on to the buyer. Acording to the government construction of complex, buildings and flats will have lower incident on GST.


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