residential

Positive Impact of GST on under-construction Flats

The GST Council is probably going to consider bringing down GST on under-construction flats and houses to 5 percent in its meeting one month from now, an authority said.

At present, the Goods and Services Tax (GST) is required at 12 percent on installments made for under-construction property or ready-to-move-in apartments where completion endorsement has not been issued at the time of sale. Be that as it may, GST isn’t exacted on purchasers of land properties for which completion certificate has been issued at the time of sale.

This 12 percent GST rate ideally would are partly offset by means of taxes paid on inputs by builders and thus the particular incidence of GST on under-construction home consumers would are around 5-6 per cent. An authority said that presently builders are paying for the inputs for construction in money and don’t seem to be passing on advantages to buyers and thus, there’s a need to bring them to the formal channel.

Major construction material, capital product and input services used for construction of flats and homes attract 18 per cent GST, whereas cement attracts 28 per cent tax.

Prior to GST rollout, under-construction housing comes attracted 4.5 per cent service tax and a worth more tax (VAT) of 1-5 per cent betting on the state. Additionally inputs employed in construction attracted 12.5 per cent excise duty additionally to 12.5-14.5 per cent VAT. Besides, entry tax was additionally levied on the inputs. After adjusting for credits on inputs used, the effective per-GST tax incidence on such housing property was 15-18 per cent.

However, if the GST slab for real estate is finalised above 12 per cent, then, home buyers and developers may take a hit, at a time when property prices are already unaffordable in many places.

December 24, 2018 / by / in , , , , ,
Supertech will invest Rs 800 cr this fiscal to deliver 10K flats in the next year

Supertech – a well known real estate group will invest approximately Rs 800 crores this year in order to complete various construction projects to achieve the target of delivering 10,000 flats in the next fiscal year, according to a top company official.

MD Mohit Arora said that Supertech is also looking forward to its sales booking to increase to Rs 3000 crore during the 2018-19 fiscal because of the increase in demand in real-estate, distinctively from ready-to-move-in flats.

In the last 30 years, Supertech has delivered 40,000 apartments and is aiming to deliver 60,000 flats across different ventures, most notably in Noida, Gurugram and Greater Noida.

In ‘Supernova’, a project by Supertech, the company has built 575 units in its 2 towers. A tower for commercial purpose with a massive area of 10 lakh square feet will be completed by end of this year.

The biggest highlight of Supernova will be an 80-storey tower which will comprise of 250 flats and 600 studio apartments. Another tower will have 80 Armani-residencies and 250-rooms hotel.

Supertech Chairman is aiming to deliver 10000 units in the 2018-19 fiscal year.

Supertech is aiming to raise more funds for executing its projects. In December a year ago, it raised Rs 430 crore from Altico Capital to fund its current housing project in Noida and reimburse debt.  In September last year to complete its Eco-Village residential project, it had raised Rs 350 crore.

August 20, 2018 / by / in , , ,