GST to help Affordable Housing Projects

The advent of GST has introduced a new taxation procedure in the market. With simpler and transparent taxation payment, there has been a great sign of relief for the buyers and developers. The framework of GST is emerging as a win-win for almost the majority of the people. According to the industry experts, this amendment in the taxation procedures would give a boost to the affordable housing projects as well. Though there wouldn’t be a direct impact on the affordable housing segment but the transparency about the unscrupulous transactions and concept of rationalised taxes would attract more home buyers.

The affordable housing projects have been benefitting the larger strata of the population thus giving high growth hopes to the real estate sector. According to the government’s Credit-Linked Subsidy Scheme (CLSS), households with income of less than Rs 18 lakh are suitable to go for affordable LIG and MIG housing units under its interest subsidy scheme. As most of the people belonging to the low-income background are still struggling to purchase their own house, there is a huge demand for the affordable housing units. Being the low-cost units, such properties are a new hope for people aspiring to buy the first house. The frequently held meetings by the government authorities try to eliminate the challenges that are being faced by the developers and builders while executing such projects.  Also, there is a clear-cut statement by the experts that this segment is going to be the most established wing in the coming years. The policy makers and the financial institutions have made ample amount of amendments in order to assist the same PMAY scheme.

“There are enactments and changes that are so in line with the welfare of the people that they tend to benefit almost all the market sectors.  GST is undeniably that one change from which we can expect prospected benefits.  Due to the array of amendments and enactments in the property related law, the market is easing up so it’s the right time for people to come ahead and go for the right purchase. We are all ready with our affordable housing projects in Gurugram and wish to come up with some more in rest of the regions as well” says Pradeep Aggarwal, Co- founder & Chairman, Signature Global.

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