Ahmedabad: Goods and Services Tax (GST) regime would not impact the non-premium realty sector adversely and the prices of premium properties with prices above Rs 4000 per square ft would see a rise of 2 to 3% owing to the implementation of GST which would be 12% (including land pirce) for the sector.

Confederation of Real Estate Developers’ Association of India (CREDAI) treasurer and Director cum former president of Gujarat Institute of Housing and Estate Developers (GIHED) Shekhar Patel today said this addressing a press conference here along with GIHED president Ashish Patel and secretary Dhruv Patel in connection with the 12th edition of Homes for All Property Show to be held at Gujarat University convention hall from June 24 to 25 and to be inaugurated jointly by union minister of urban development M Venkaih Naidu and Chief Minister Vijyay Rupani in presence of Dy CM Nitin Patel, the Credai treasurer said that over all the GST would be beneficial for the sector both for consumers as well as the realtors.

‘Currently there was some confusion about it but it would be cleared hopefully in a year’s time. In the longer run GST will be beneficial for the sector. However, at this juncture we only know that the premium properties would become costlier and the remaining large chunk of non-premium won’t probably be affected. In some cases the GST would be beneficial especially for the properties with low land cost component,’ he said.

To a query he said that the GST along with the Real Estate (Regulation and Development) Act, 2016 (RERA), which has been implemented to make home buying process simpler and easier bringing transparency in it, would be very good for the sector.

Earlier Mr Ashish Patel said that more than 70 developers would participate in the homes for all property show this year. 200 projects would be on display during it. It would also provide a stage for allied industries apart from the realtors, property buyers and developers.

He informed that other projects like Ahmedabad municipal corporation (AMC) service app, common mobility payment card, airport shuttle service, command and control center under the integrated transport management system of the smart city project and a windmill farm of 4.2 mega watt capacity would also be inaugurated from the same platform on June 24.

DeshGujarat