NAREDCO requests govt to reduce GST on raw materials
The National Real Estate Development Council (NAREDCO) asks the government to reduce the goods and services tax (GST) on raw materials, which include steel and cement. The Indian real estate industry is facing a huge problem of the increasing prices of raw materials, which include steel and cement. Further according to the developers the 28% GST on both commodities is adding more burden. NAREDCO West vice president and partner of Prem Group Hitesh Thakkar told the media that imposing a 28% GST on cement and steel from the developers is wrong, especially at a time when the prices of raw materials are already high. The apex real estate body NAREDCO has made representations requesting the government for reducing the GST. He said that such a high percentage of GST will only impact the end-users who are the homebuyers. The builders will take the profit by increasing the cost of residencies and commercial spaces. According to the real estate expert Colliers India, the average cost of construction of the developers has risen by 10-12% over the last year. This is mainly due to the higher input cost due to supply-side constraints. The prices of raw materials such as cement and steel have increased by 20% on a yearly basis as of March 2022. These materials constitute a crucial share of the total cost of construction. In order to express concern regarding the rising prices of raw materials, the Builders Association of India’s (BAI) president Nimesh Patel wrote a letter to PM Narendra Modi about the concerns of the Indian construction industry, especially, the challenges faced in the infrastructure and housing sectors due to the abnormal price rise. Image Source
Also read: Cost of construction rose by 10-12% over last year: Report
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