By Admin 
Gst impact on real estate: The GST Council has reduced the GST rate on many construction materials, due to which the expectations of real estate are being promoted. This will make the housing sector profit. According to the report of The Economic Times, GST on construction materials is expected to reduce the project cost for developers and home buyers.
In the 56th meeting of GST Council, GST on cement was reduced from 28 percent to 18 percent. The role of cement is very important in the construction of any real estate project. In such a situation, financial pressure on housing and commercial projects is expected to decrease due to reduced GST on this.
GST has also been reduced from 12 percent to 5 percent on marble and travartine blocks, while granite blocks will also be replaced by 5 percent GST instead of 12 percent. Sand-lime bricks and stones will now be charged 5 percent tax instead of 12 percent. Let us know what is the reaction of people associated with the real estate industry:
Project delivery will be easy
Sikka Group Chairman Harvinder Singh Sikka says that this decision of the government has brought relief not only for the real estate sector, but also for the entire construction industry. Reduced GST on cement from 28 percent to 18 percent and brick-sand on basic ingredients like brick-sand, reduced GST from 12 percent to 5 percent will reduce the cost of the project and it will be easy to give timely delivery. At the time of festivals, this step will increase the trust of home buyers and bring new energy to the market. Also, due to the boom in infrastructure, employment opportunities will also increase, which will directly benefit the economy.
The entire sector will get new energy
Ansal Housing Director Kushagra Ansal said, “The entire sector will get new energy by cutting GST rates on construction materials. Due to the low cost of important materials like cement and tiles, the finance and delivery of the projects will be easier. This will provide houses available to buyers at cheap rates and developers will also help in completing the project on time. This is a step that is very beneficial for both industry and consumer. ‘
Pankaj Kumar Jain, director of the Cadblue Group, says, “Every person is basic needed, in such a situation, GST on construction materials up to 28 percent increased the burden on the common man’s pocket.” Now the government’s decision to improve it is welcome. This will benefit the sector. ”
Affordable housing will get a boost
Vikas Pundir, CMD of SKB Group said, “The reduction of tax on construction materials will reduce the construction cost of up to 3-5 percent, which will especially promote affordable housing.”
“This step will directly benefit both developers and home buyers,” says Trehan, the managing director of the Trehan Group. For developers, this input cost will reduce the cost and financial pressure of the projects, so that the projects can be completed rapidly. At the same time, houses will be available to house buyers at affordable prices because developers will be able to reach these savings to the customers. This reform will promote new demand in the real estate sector, encourage the new project launch and strengthen the confidence in the market. ”
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