Mumbai : CREDAI-MCHI, the apex body
representing the real estate industry in the Mumbai Metropolitan Region (MMR),
has called for a comprehensive review of the Goods and Services Tax (GST)
framework affecting the real estate sector. In a formal submission to the Shri
Pramod Sawant, Hon’ble Chief Minister of Goa and a member of the GST Council,
the organization outlined concerns surrounding the impact of GST on
redevelopment, affordable housing, and rehabilitation projects.
Mumbai, with over 14,000 dilapidated
buildings and 70 lakh residents living in slums, faces significant housing
challenges. Redevelopment is crucial for addressing these issues by creating
additional housing stock and improving living conditions. However, CREDAI-MCHI
has raised concerns over the GST imposed on these projects, arguing that it
adversely affects both developers and homebuyers. The non-availability of Input
Tax Credit (ITC) has increased costs for homebuyers and slowed demand in an
already sluggish market.
Mr. Domnic Romell, President of
CREDAI-MCHI, emphasized the financial strain caused by current GST regulations,
stating, “The GST implications on redevelopment and rehabilitation projects
have placed an undue burden on both developers and homebuyers. We urge the
government to reconsider these charges, particularly for projects involving the
rehabilitation of slum dwellers and residents of unsafe, dilapidated buildings.
The real estate sector, one of the largest employers in both organized and
unorganized sectors, is crucial for economic revival. As Mumbai attracts top
talent and faces rising housing demand, the city's geographic constraints
hinder its ability to accommodate the growing population effectively.”
CREDAI-MCHI also highlights other
pressing issues, including GST on Transfer of Development Rights (TDR) and the
Rs 45 lakh limit for Affordable Housing benefits. Additionally, developers face
costs for constructing both rehabilitation and sale buildings, paying GST at
rates of 18% or 12% without ITC. Despite these costs, GST authorities have
levied GST on the rehabilitation component of schemes, resulting in slum and
dilapidated building occupants being required to pay GST on flats they already
own. This levy is seen as anti-poor and contrary to the spirit of the GST
regime, amounting to double taxation.
The organization advocates for
greater flexibility, proposing that developers should have the option to choose
between the 12% GST rate with ITC or the 5% rate without ITC. This flexibility
would help ensure ITC cost savings are passed on to homebuyers while allowing
developers to continue delivering large-scale affordable housing projects.
CREDAI-MCHI remains committed to
working with the government to address these issues and drive growth in the
real estate sector while ensuring the availability of affordable and safe
housing for Mumbai’s residents.
ABOUT CREDAI-MCHI
CREDAI-MCHI is an apex body
comprising members from the Real Estate Industry in the Mumbai Metropolitan
Region (MMR). With an impressive membership of over 1800+ leading developers in
MMR, CREDAI-MCHI has extended its reach throughout the region, establishing
units in various locations such as Thane, Kalyan-Dombivli, Mira-Virar, Raigad,
Navi Mumbai, Palghar-Boisar, Bhiwandi, Uran-Dronagiri, Shahapur-Murbad, and
most recently in Alibag, Karjat-Khalapur-Khopoli, and Pen. Being the only
Government-recognized body for private sector developers in MMR, CREDAI-MCHI is
dedicated to promoting the industry’s organization and progress.
As a part of CREDAI National, an apex
body of 13000 developers across the nation, CREDAI-MCHI has emerged as a
preferred platform for regional discussions on housing and habitat by
establishing close and strong ties with the government. It is committed to
breaking barriers to create a strong, organized, and progressive real estate
sector in the MMR.The vision of CREDAI-MCHI is to empower the Real Estate
fraternity of the Mumbai Metropolitan Region as it preserves, protects, and
advances the right to housing for all. To continue being a trusted ally,
guiding their members, supporting the Government on policy advocacy, and
assisting those they serve through the ever-evolving real estate fraternity.
Website: https://mchi.net/
For further media queries, please
contact:
Sonia Kulkarni | 9820184099
sonia.kulkarni@hunkgolden.in