TIL Desk/Business/New Delhi/ Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status.
The year 2017 was an eventful one for the sector with many structural policy reforms, which resulted in a significant decline in home launches to 1,03,570 units compared to 1,75,822 in 2016.
Industry players are expecting rationalisation of the GST rates from the current 12 per cent to 6 per cent and bringing stamp duty under the ambit of GST. “Also, industry status to the full real estate sector will help in creating surplus housing demand along with financing at lower rate for long-term projects.
“Rationalisation of GST by capping it at 6 per cent with input tax credit for the entire segment in real estate will help revive and boost demand,” Naredco National President Niranjan Hiranandani said.
During the pre-GST era, service tax was around 4.5 per cent and VAT 1 per cent — resulting in total tax outgo of 5.5 per cent. “Further, stamp duty continues to remain in force even after implementation of GST and the rates vary from state to state which increases the costs for the consumer.
