KOLHAPUR: Prices of flats in the state are likely to rise by Rs 200 per square foot with the Confederation of Real Estate Developers Association of India (Credai), Maharashtra, deciding to pass the burden of input tax credit to purchasers.
A decision to this effect was taken at the annual general meeting of the developers’ body in Kolhapur on Saturday.
Shantilal Katariya, vice-president of Credai, India, and Rajiv Parikh, president Credai told reporters that the decision was taken after a discussion at the meeting. They were, however, non-committal on the date of execution of the decision.
Katariya said builders are paying 13% tax on all construction material to the government, which they did not recover from purchasers. “The input tax is part of GST, which is applicable if any service or goods are supplied to taxable person. Builders were not passing this tax to the purchaser.
He added that that Credai will follow-up with the government in this regard.
A resolution was passed, asking the government to have uniform provision for Rera. Parikh said that all states have different provisions under Rera, which was proving a hurdle for business.
“Builders in Maharashtra are most affected as the state alone has a share of almost 50% of real estate business due to rapid urbanization,” said Parikh, adding that uniform Rera provisions would ensure smooth business.
Credai welcomes the government decision to amend Land Title Act, but demanded that search report for land be prepared by the government and not a private lawyer. “This will avoid or bring down number of litigations,” he said.
Source : https://timesofindia.indiatimes.com/city/kolhapur/maharashtra-flats-may-cost-more-as-buyers-to-pay-input-tax/articleshow/69709205.cms