Pre-budget expectation quote 2021 Ambience Group
“The industry expects a round of measures to be announced to help revive the real estate sector. A slew of measures including RBI’s repo rate cut of 140 bps, resulting in a fair lowering of interest rates, a six-month moratorium on EMIs, monetary and fiscal assistance to real estate companies at the project level brought some operational efficiency in the latter part of 2020. But the sector needs additional consideration and continuing impetus to boost demand in 2021.
The government also needs to focus on strengthening the consumers capacity by way of more efficient tax rebates and increased tax reliefs to prospective homebuyers. Development firms are already tackling challenges of liquidity to complete ongoing projects. Moreover, with homebuyers looking primarily to invest in ready-to-move properties, under-construction projects are being neglected.
In such a scenario, there is a need to boost demand for under-construction homes as well. Developers seek a waiver on GST for under-construction homes. The present GST rate on under-construction properties is 5% minus the Input Tax Credit benefit for premium homes (valued above INR 45 lakh) and 1% for affordable homes (valued under INR 45 lakh). A waiver on GST will reduce the overall burden on developers and making the the property value more viable and the pricing competitive.” Mr. Ankush Kaul, President (Sales & Marketing) – Ambience Group.