The real estate sector would greatly benefit if it is granted infrastructure status as this will promote greater transparency, boost investment and borrowing capacity. Additionally, it would help if stamp duty charges are minimized or subsumed under GST.
With regard to affordable housing, we urge the government to consider reinstatement of the concessional GST rate of 12% on works contract services provided to the affordable housing projects till such time the projects obtain the completion certificate.
Additionally, it will give added impetus if the government considers raising the price cap for affordable housing from the current ?45 lakhs to ?80 lakhs as construction cost is presently not financially viable.
We also urge the government to provide clarity on availing input tax credit under the CGST act on GST paid for the construction of commercial buildings that are let out on rent or hire. In order to create positive sentiment, income tax interest claimed by individuals should be increased from the existing 2 lakhs to 3 lakhs for the next few years.
With respect to the benefit of exemption for investment made in two residential house properties, we urge the government to raise the current cap from ?2 crore to ?5 crores to boost the real estate sector.
