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G Hari Babu, President of National Real Estate Development Council (NAREDCO) has urged the government to bring the Goods and Services Tax rates of building materials to the bracket of 18 per cent.
Speaking at the sidelines of NAREDCO's 17th edition of National Convention in the national capital, NAREDCO President reiterated industry's demand of Input Tax Credit (ITC) under the Central Goods and Services Act (CGST) on commercial assets constructed for leasing purposes. "One thing we are asking is the input credit facility for the builders because now it is five percent fixed rate and for affordable housing already one percent is there up to forty five lakh. We are requesting them to increase to sixty lakh. And as far as the material concern there are certain areas where twenty eight per cent GST is applicable for example cement and other materials so it is not a luxury and we want to bring that also to eighteen per cent level. So no GST should be there on building materials more than eighteen per cent that is demand," he added. GST has significantly impacted construction industry and real estate industry. GST on construction services and materials is complex, with various rates applied based on the type of service, material, and project. Construction of affordable housing projects attracts a reduced GST rate of 1 per cent while different construction materials have varying GST rates from 5 per cent to 28 per cent. During the curtain raiser, Delhi Chief Minister Rekha Gupta assured the industry members that "Government just needs 2 years to revamp Delhi and fill the bottleneck of past 10 years of developmental backlog. "We urge the industry members and developers to come up with the PPP models for developing state of the art hospitals, schools, shopping malls, accommodations and infrastructure and the government will give the full policy and funding support," she added. Speaking at the event, Hari Babu affirmed the vision of the body and said, "From retrofitting existing structures to building climate-smart homes, the sector must adopt a forward-thinking approach that doesn't wait for regulation to act responsibly. Today's discussions are not just about vision, they are about setting actionable goals." Harsh Vardhan Bansal, President, NAREDCO Delhi, shared how the capital's real estate sector is evolving, "Delhi presents a unique case where infrastructure demand is high, yet land and environmental constraints are very real. The question is not whether we can grow, but how we can grow smarter. "Our focus at NAREDCO Delhi is to ensure that housing, commercial development, and urban services all move in the direction of sustainability. We are working closely with policymakers and urban planners to push for incentives that reward eco-friendly practices and penalize shortsighted developments. The future belongs to those who are thinking beyond the next quarter, and our goal is to build a future-ready, climate-conscious capital city," Bansal added. (ANI)
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