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gst: Realtors’ body CREDAI asks builder members to focus on green construction; seeks input tax credit in GST

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Sharm El Sheikh: The real estate sector has been growing phenomenally in the past two years on strong consumer demand and there is a need for developers to focus on green construction, realtors’ body CREDAI President Boman Irani said on Friday. Irani was addressing the 21st CREDAI NATCON conference being held here. Around 1,400 real estate developers are participating in this event.

“Real estate has been growing phenomenally,” Irani said.

Housing sales have risen sharply in the last two years as consumer demand revived strongly post-COVID pandemic.

CREDAI Chairmam Manoj Gaur said it is the best time for the real estate sector and the momentum would continue if developers do not commit past mistakes.

Irani highlighted the importance of the real estate sector, which is contributing 7-8 per cent to India’s GDP.

The CREDAI president pointed out that the construction sector contributes 26 per cent to global pollution and asked its developer members to focus on green development. “We have to be sustainable,” Irani said, adding that the real estate sector needs to adopt green construction technologies and new-age building materials. The CREDAI president noted that green construction is not expensive and said the association would help its members in moving towards sustainable development.

He added that CREDAI has already pledged to make this sector net zero by 2050.

Irani also demanded that the government consider providing input tax credit (ITC) in the residential segment.

At present, there is a GST of 5 per cent without ITC on under-construction flats. On affordable housing, the GST is one per cent without ITC.

No GST is charged on completed units.

CREDAI has been demanding that the government should allow developers to choose between a 12 per cent GST rate with ITC (assessment scheme) and a 5 per cent GST rate without ITC.

Irani said the association has been constantly in dialogue with the government on the GST issue.

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