Apartment price likely to rise by Rs.200 per square foot – Maharashtra Government.

By Abhay Harish Shah, Realty Quarter

With the Confederation of Real Estate Developers Association of India (Credai), Maharashtra Government decided to pass the burden of input tax credit to purchasers, which will affect to increase apartment prices by Rs.200 per square foot.

The annual general meeting of the developer’s board in Kolhapur took a decision on this effect on 8 June.

Shantilal Katariya (Vice-President of Credai) and Rajiv Parikh (President of Credai) informed journalists that after the debate at the meeting this decision was adopted. However, they were non-committal on the date of execution of the decision.

Katariya said that builders are paying the Government 13% of the tax on all construction materials, which they didn’t retrieve from buyers. “Input tax is a component of GST, which is relevant if a taxable individual is provided with any kind of goods or services.” He added that Credai is going to follow up on this with the government.

In order to request standardized provision for RERA, a resolution was adopted. Parikh said that RERA provides all states with distinct clauses which proved to be a business obstacle.

“Developers in Maharashtra are the most impacted, as the state alone holds nearly 50% of the share of the real estate enterprise, owing to its fast urbanization,” said Parikh. Further, it would guarantee smooth business by incorporating standardized RERA clauses, he said.

Credai welcomes the choice of the Government to change the Land Title Act but has requested that the Government and not a personal attorney draw up a search plan for the property. “The number of litigations will be avoided or reduced,” he said.