The Confederation of Real Estate Developers’ Associations of India (CREDAI) demanded that the Union Government rationalise and reduce GST to achieve its twin objectives of housing for all and affordable housing.
CREDAI president Jaxay Shah said that GST, coming as it did close on of demonetisation, was proving to be too disruptive for the sector.
“Of course, we will pass it onto the customer. But we feel it should be rationalised and reduced,” he said, addressing a press conference here.
The executive committee and governing council meeting of CREDAI was held in the city.
Shah thanked the government for giving the sector infrastructure status and also providing a subsidy of Rs 2.60 lakh foreach affordable housing unit.
He saidthere should be more financial support from banks to make the affordable housing scheme successful.
“We fully support the Government’s goal of providing quality housing for all by 2022,” he said.
He suggested that GST be brought down to five percent for a site of 500 square metres and below and eight percent for those above 500 square meters.
This would go a long way in helping small-scale developers in Tier II and Tier III cities, Shah said.
On the Real Estate Regulation Act (RERA), he said CREDAI was in no way trying to dilute provisionsof the Act.
“Regulation isneeded, and we welcome RERA,though it may be disruptive initially. But there should be a last-mile approach to the problem,” he said.
Under RERA, insurance should notbe made mandatory for registration, whereas the RERA complaint fee should be increased to Rs 25,000 to avoid frivolous complains against developers.
Shah said CREDAI would build 14,500 affordable housing units across Andhra Pradesh in places like Vijayawada, Visakhapatnam and Kurnool to meet the government’s objective of housing for all by 2022.
CREDAI national president-elect Satish Magar said that the body, through its thought leadership platforms, has led the industry through its transitory phase forthe past one and half years.
“CREDAI has been relentlessly working towards development of the Indian rear estate sector and government initiatives have been instrumental in setting a strong foundation for ushering dynamic growth in the industry,” he added
Established in 1999, CREDAI is the apex body for private rear estate developers in India, representing over 12,000 developers in 23 states and 203 city chapters across the country.