In order to boost affordable housing, the Confederation of Real Estate Developers of India [CREDAI] Indore asked for the extension of PMAY [Pradhan Mantri Aawas Yojna] benefits to all sections. The body said that the advantages of owning a home under PMAY scheme should be made available in all other housing projects.
Liladhar Maheshwari, the chairman of CREDAI Indore said that the affordable sector of the Indian real estate sector will not get a push until its benefits are extended to all sections of the society. The Indore chapter of CREDAI further said that people are not taking interest in the property market due to the addition of GST and Stamp duty that makes property costlier.
Chairman Maheshwari also said that the GST for properties in the affordable segment is 8% while the same is 12% for the projects that are not linked with the PMAY scheme. He also said that the extension of benefits will encourage buyers to invest in the property market.
As per CREDAI, the Goods and Service Tax [GST] for under-construction homes under the CLSS [Credit linked Subsidy Scheme] is charged at 8%, whereas the people who are not eligible for CLSS are required to pay high GST.
CREDAI suggests merging of stamp duty with GST will benefit both the prospects and the property market. The Chairman Maheshwari further said that the fixed stamp duty will also prove beneficial to the Indian property market.
According to CREDAI, the stamp duty is about 11% including all additional cess and GST is 12%. This total to 23% and this is a direct tax burden on the homebuyer.