Naredco asks government to halve GST for work contracts

Real estate body National Real Estate Development Council (Naredco) has urged the government to lower the goods and service tax (GST) rate for work contracts to 6% from the current level of 12%.

Written by FE Bureau

New Delhi

November 23, 2017 05:50 IST

Naredco, GST, Hasmukh Adhia, MoS for finance & shipping, GST rate, finance secretary, input tax credit, Rajeev Talwar

According to Naredco, capping GST at 6% will incentivise buyers to invest in under-construction properties, who otherwise, are waiting for completed properties to save 12% GST.

Real estate body National Real Estate Development Council (Naredco) has urged the government to lower the goods and service tax (GST) rate for work contracts to 6% from the current level of 12%. According to Naredco, capping GST at 6% will incentivise buyers to invest in under-construction properties, who otherwise, are waiting for completed properties to save 12% GST. This will not only give a huge boost to the economy and GDP, but also create huge job opportunities, it said. Nardeco’s chairman Rajeev Talwar and president Niranjan Hiranandani met finance secretary Hasmukh Adhia and P Radhakrishnan, MoS for finance & shipping. “We have requested the government for a GST rate of 6% with input tax credit. We feel a step like this would go a long way in boosting demand. The buyers stand to benefit as developers would pass on the benefit to them. The government also stands to benefit as they will collect more tax because of increase in demand,” the release quoted Talwar as saying.

This article was first uploaded on November twenty-three, twenty seventeen, at fifty minutes past five in the morning.