Government of India to address GST issue on real estate sector
Real Estate

Government of India to address GST issue on real estate sector

Manish Kumar Sinha, Joint Secretary (TRU-II), Department of Revenue, Ministry of Finance and Secretary-GoM (Group of Ministers), Real Estate under GST regime, Government of India has suggested that the construction and real estate industry should push for bringing the entire sector under GST as early as possible, which will solve major problems of the sector.

Speaking at an interactive session on Decoding Union Budget – A Real Estate Perspective, organised by FICCI, Sinha also assured the industry full support from the government. “Government is sensitive to this sector and is doing the best it can,” he said, adding that the government is aware that real estate is one of the key sectors and provides jobs and contributes, directly and indirectly, around 8-10 per cent to the GDP.

While addressing the industry representatives, Sinha also highlighted that post-GST, the tax rates have come down to 12 per cent which was 20 per cent earlier. To boost the affordable and mid-segment housing, availability of credit is essential for growth.

Sanjay Dutt, Chairman, FICCI Real Estate Committee and MD and CEO, Tata Housing Development and Tata Realty and Infrastructure said that the demand in the office sector is growing strongly but on the other hand, the demand of residential space has not seen that kind of growth and is currently where it was few years back. In order to bring back the demand, he suggested that the developers should construct, design and build houses keeping in mind the end-user.

FICCI-EY White Paper on Indian Real Estate: Demystifying the new tax and regulatory environment was also released during the event which highlights the key tax and accounting issues impacting the real estate sector.

Gaurav Karnik, National Leader, Real Estate, Ernst and Young LLP added, “The release of the paper seeks to outline some of the income tax issues that needs clarity from the government which would go a long way in reducing litigation, result in better compliance and also provide relief to the sector.” Besides, the reasonable rates along with seamless utilisation of input tax credit coupled with lower stamp duty may be considered by the government so that the real estate sector can continue on its recovery path.

Manish Kumar Sinha, Joint Secretary (TRU-II), Department of Revenue, Ministry of Finance and Secretary-GoM (Group of Ministers), Real Estate under GST regime, Government of India has suggested that the construction and real estate industry should push for bringing the entire sector under GST as early as possible, which will solve major problems of the sector. Speaking at an interactive session on Decoding Union Budget – A Real Estate Perspective, organised by FICCI, Sinha also assured the industry full support from the government. “Government is sensitive to this sector and is doing the best it can,” he said, adding that the government is aware that real estate is one of the key sectors and provides jobs and contributes, directly and indirectly, around 8-10 per cent to the GDP. While addressing the industry representatives, Sinha also highlighted that post-GST, the tax rates have come down to 12 per cent which was 20 per cent earlier. To boost the affordable and mid-segment housing, availability of credit is essential for growth. Sanjay Dutt, Chairman, FICCI Real Estate Committee and MD and CEO, Tata Housing Development and Tata Realty and Infrastructure said that the demand in the office sector is growing strongly but on the other hand, the demand of residential space has not seen that kind of growth and is currently where it was few years back. In order to bring back the demand, he suggested that the developers should construct, design and build houses keeping in mind the end-user. FICCI-EY White Paper on Indian Real Estate: Demystifying the new tax and regulatory environment was also released during the event which highlights the key tax and accounting issues impacting the real estate sector. Gaurav Karnik, National Leader, Real Estate, Ernst and Young LLP added, “The release of the paper seeks to outline some of the income tax issues that needs clarity from the government which would go a long way in reducing litigation, result in better compliance and also provide relief to the sector.” Besides, the reasonable rates along with seamless utilisation of input tax credit coupled with lower stamp duty may be considered by the government so that the real estate sector can continue on its recovery path.

Next Story
Products

Viva ACP Launches FR A1-Rated Honeycomb Panels for Fire Safety

Viva, Asia’s largest manufacturer and supplier of aluminium composite panels (ACP) introduced its FR A1-rated Honeycomb Panels, setting a new industry benchmark for fire safety and architectural excellence. Engineered to deliver exceptional performance, these panels combine advanced fire-resistance technology with aesthetic versatility, offering a revolutionary solution for safety-critical environments.The FR A1 rating represents the highest standard of fire resistance under the European Standard EN 13501-1, signifying non-combustibility and zero contribution to fire, smoke, or toxic emissio..

Next Story
Real Estate

Almal Real Estate Expands into Commercial, Global Markets

Almal Real Estate Development is soon to announce its upcoming expansion into new verticals and international markets as part of its strategic growth plans for 2030. The company, known for its innovative luxury residential and hospitality developments, is preparing to diversify into the commercial sector with the introduction of The Smart Space, a network of business centers in UAE featuring five-star amenities. Additionally, Almal is entering new markets in Bali and Thailand as a community developer, focusing on villa and townhouse projects.The expansion into the commercial real estate sector..

Next Story
Infrastructure Urban

NABARD Approves Rs 9.03 Billion for 127 Projects in Himachal

The Himachal Pradesh government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for 127 projects worth Rs 9.03 billion for the 2024-25 fiscal, Chief Minister Sukhvinder Singh Sukhu announced. During a meeting with MLAs from Kangra, Kullu, Kinnaur, Solan, Chamba, Bilaspur, and Lahaul-Spiti districts to discuss priorities for the 2025-26 budget, Sukhu said the approved projects include 50 MLA-priority schemes under the Public Works Department, valued at Rs 4.12 billion, and 23 MLA-priority schemes under the Jal Shakti Vibhag, costing Rs 1.79 billio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?