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.
Related News Articles
Quick Commerce Frenzy: Companies Scramble for Dark Stores and Talent Amid Rapid Growth
Quick commerce firms are in a heated battle to expand operations, with a rush to open dark stores and a scramble to find personnel to manage infrastructure and supply chain.
Mumbai Real Estate Update: Alka Yagnik and Daughter Syesha Kapoor Invest in Luxury Apartment
Alka Yagnik, the renowned Bollywood singer, and her daughter Syesha Kapoor have made a significant investment in Mumbai’s real estate market by acquiring a ₹11.5 crore apartment in the prestigious Oberoi Sky Heights in Andheri West.
Urgent Appeal to Restore Online Access to Mumbai's Crucial Property Databases
The real estate and planning sectors in Mumbai are calling for immediate restoration of online access to crucial property databases, which have been crucial for facilitating transactions, planning, and development in the city.
L&T Realty and Valor Estate Partner to Develop Luxury Mumbai Project Worth INR 8500 Crore
The 7.5-acre land parcel in Bandra Reclamation has a history dating back to 2006, with a consortium led by Om Metals receiving approval from the Maharashtra Housing and Area Development Authority (MHADA) for development.
Chris Wood's Strategic GREED & fear Portfolio Adjustments: What He's Buying and Selling Now
Chris Wood, a renowned investment analyst, has made significant changes to the GREED & fear long-only portfolios. Discover what he's buying and ditching to stay ahead in the volatile market.
Kangana Ranaut Clashes with Hansal Mehta Over Past Property Controversy
Kangana Ranaut has taken to social media to express her dissatisfaction with filmmaker Hansal Mehta, who recently questioned her actions during a 2020 property controversy in Mumbai.