The price of flats in NCR will go down: The central government has given great relief just before the festivals. Reducing GST on construction materials will benefit homemarks because this will reduce their costs. This will directly benefit those common people who build their home themselves, but instead of houses connected to the metro cities or NCR, they buy flats or apartments instead of houses connected, whose construction is with developers or builders. In such a situation, the biggest question is whether people who buy flats will also benefit from decreasing construction costs? Let’s know from experts ..
Explain that the GST Council has reduced the tax on cement from 28% to 18% and the tax on works like brick, tile, stone has been reduced from 12% to 5%. This change is going to be implemented from this September. If a family is building its own house, then now not only bricks but also cement sack will be cheaper. Suppose if a person is spending 20 lakh rupees on the construction of the house, then he will get the benefit of low cost of about two to two and a half percent.
Apart from the common people from this decision, the biggest benefit is going to be available to real estate developers who prepare big projects and their cost comes in crores of rupees. In such a situation, they will save two or two and a half percent in lakhs of rupees. But if the builders also deliver this savings to the customers, then the prices of flat and apartments can also decrease. That is, the buyer who buy a flat can have double benefit. Price may be low and more probability of timely delivery.
Growers will benefit home buyers?
Sanjay Sharma, director of SKA Group, says that the deduction in GST rates on major construction materials like cement, tiles, bricks and stone will not only reduce the construction cost of the builders but will also speed up real estate and infrastructure projects. Buyers will also be able to get homes at cheap prices and there will be an atmosphere of faith in the sector.
Kushagra Ansal, director of Ansal Housing, says that the entire sector will get new energy by cutting GST rates on construction materials. Lowering the cost of important ingredients like cement and tiles will make the finance and delivery of projects easier. This is a step that is very beneficial for both industry and consumer.
Sandeep Chillar, founder and chairman of Landmark Group, said that simplifying GST will give a big benefit to the real estate market and its direct impact will reach the buyers. Developers will get better margins due to reduced input tax. Now they will be able to maintain world-class quality even at low cost. When the demand is the highest in the festive season, this improvement is a great opportunity to increase the trust of consumers.
Prateek Tiwari, the managing director of Prateek Group, says that the decision to reduce GST on cement has been taken at the right time. Festivals in India mean new hopes and new starts and buying a house is part of the same spirit. The government has given the opportunity to developers by reducing the biggest tax burden on construction that they should give better offers to buyers, keep the purchases, keep the price or present a flexible payment plan.
Akash Kohli, Founder and CEO of Alaonte Group, said, “Cutting GST rate cut on cement and construction materials is actually a Diwali gift for the real estate sector. A reduction of 10 percent will reduce the cost of construction and hope that we will be able to reach about 60% savings home buyers.”
Anandaram Varayur, co-founder of Manasum Homes, says that the deduction made in GST on construction materials will give better cash flows to developers and it will be easy to complete the project on time. In the competitive market, a large part of these benefits is likely to reach home buyers. Especially senior citizens will get more benefit from this, as they often depend on passive income. Even the smallest savings in expenses for them can make a big difference in the quality of life.
