Budget 2019 expectations: Realty developers demand rationalisation of GST, input credit from Modi government
Demand is to GST exempt for suppliers making supplies to SEZ units and thereby, supporting them in managing their working capital position which gets blocked in the shape of GST refunds.
With just one day to go for budget 2019, the real estate developers have demanded from the Narendra Modi to rationalise the GST across sector. They said credit inputs would be allowed on work construction and interior of office space as it has direct connection with the real estate sector. Gaurav Kashyap CEO Cherry Hill Interiors told Zee Business online, "GST input credit be allowed on works contract services for the construction and interior of office space since it has direct connection with the carrying out of business activities. Thereby, incentivizing the industry to undertake Capital expenditures."
Kashyap said that input supplies to be made GST exempt for the suppliers who are making supplies to SEZ units and thereby, supporting those suppliers in managing their working capital position which gets blocked in the shape of GST refunds on account of supplies to SEZ units/developers.
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Surendra Hiranandani, Founder and Director, House of Hiranandani told, "There is significant expectation is to cut GST rates to a single, standard rate, and not have multiple rates or taxes. The abolition of stamp duty or its incorporation under GST will be an added advantage welcome." He said that Indian real estate sector is the most highly taxed with the combination of high direct and indirect taxes, stamp duties and levies for development approvals. These extraordinarily high taxes coupled with high interest rates has been crippling growth.
To bring back growth in the sector which is so vital to any developing economy the Government needs to do implement the following measures in the upcoming budget.