Flat Prices in Maharashtra to Increase as Developers Pass on Input Tax Burden
Homebuyers in Maharashtra may have to pay an additional Rs 200 per square foot as developers decide to pass on the input tax credit burden, according to the Confederation of Real Estate Developers Association of India (Credai), Maharashtra.
Real EstateGstInput Tax CreditCredaiMaharashtraReal Estate MaharashtraJul 12, 2024
The move is likely to increase the prices of flats by Rs 200 per square foot. Shantilal Katariya, vice-president of Credai, India, and Rajiv Parikh, president of Credai, confirmed the decision, although they did not specify when it would be implemented.
According to Katariya, developers have been paying 13% tax on all construction materials to the government, which they did not recover from purchasers. He explained that the input tax is part of the Goods and Services Tax (GST), which is applicable when any service or goods are supplied to a taxable person. Until now, builders have not been passing this tax on to the purchaser.
Credai has decided to follow up with the government on this matter. The decision is expected to have a significant impact on the real estate market in Maharashtra, with homebuyers likely to bear the brunt of the increased costs.
Information
The Confederation of Real Estate Developers Association of India (Credai) is the apex body of private real estate developers in India. It has over 12,000 member developers across the country, with 23 state and 221 city chapters.
Credai, Maharashtra, is the state chapter of Credai, representing the interests of real estate developers in the state.
Frequently Asked Questions
What is the expected increase in flat prices in Maharashtra?
The prices of flats in Maharashtra are likely to rise by Rs 200 per square foot.
Why are flat prices increasing in Maharashtra?
The Confederation of Real Estate Developers Association of India (Credai), Maharashtra, has decided to pass on the burden of input tax credit to purchasers, leading to an increase in flat prices.
What is input tax credit?
Input tax credit is the tax paid by developers on construction materials, which is part of the Goods and Services Tax (GST).
Who is Credai?
The Confederation of Real Estate Developers Association of India (Credai) is the apex body of private real estate developers in India.
What is the purpose of Credai?
Credai represents the interests of real estate developers in India and works to promote the growth and development of the real estate industry.
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