The Real Estate sectors hopes for GST revision to boost affordable housing in the upcoming Union Budget.
To fulfil the government’s vision of ‘Housing for All,’ experts and industry leaders have shared their insights, proposing vital measures to boost the affordable housing landscape. The proposals include revisiting GST rates, tax deductions, land allocation, and fund boost.
The sector hopes to increase the qualifying cost for affordable properties and release government-owned lands at reduced rates aligns with inclusive growth objectives. The push to raise the tax deduction limit on home loans from Rupees 2 lakhs to Rupees 5 lakhs aims to rejuvenate the budget housing segment amidst recent interest rate hikes.
Another proposal was made to must increase its allocation to the Pradhan Mantri Awas Yojana ( PMAY ), which has the potential to unleash heightened economic activity in the rural economy. In FY24, the allocation was ₹79,000 crore.
A suggestion was also made o that the “Micro, Small and Medium Enterprises ( MSME ) status” for small builders and introduction of a scheme for those earning salaries up to R40,000 per month. Property developers are also seeking a GST rate cut on construction materials.
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