GST is boosting Ready Homes but what about Under Construction property

GOODS & SERVICES TAX is boosting ready homes. We had ample availability of ready homes in the most of the metro cities or tier 1 & tier 2 cities. Now ready homes is moving fast because of few reasons: 1. There is no GST applicable on it & most of the builders are saying that if you buy ready homes you will directly save the 12% of tax which means, customers get direct appreciation of 12%, also one can consider like 12% discount on property or 12% tax has been waived off. 2. Also lot of confusion in real estate industry and builders not yet ready to pass on the GST ITC benefits to its customers, so customers have only option to buy ready homes & saves 12% of tax directly. 3. Clients who have bought recently in under construction property at initial phase of the project are now cancelling their property. Since again builders are not ready to pass on the ITC benefits & shifting to ready homes.

It’s good for real estate industry to sell all ready homes inventory & start with fresh launch of the project. But real issue is, after finishing with the ready homes, does real estate industry will again be boosted? Real estate industry is really in uncertain future.

I was reading an article about DDA housing schemes, DDA had floated about 12000 units for sale under PMAYS and only 8000 applications received till the final date for this scheme. And 1^st time in DDA history has extended the date till 11^th September 2017 to receive the adequate no of applications to sale 12000 units. These flats under DDA scheme is being sold out or allotted with lottery systems. Lottery systems really looks like joke if we do not have at least same no of applications of total no of flats are being allotted. I guess DDA requires at least 2 times application of total no of flats are being allotted, since after getting application from customers lot of scrutiny happens as per DDA rules & regulations. I am sharing this because we can understand the actual reality of Real Estate industry in India. If government itself is not able sale or at least not getting the adequate no of applications, even if flats are so economical and huge subsidy under PMAYS, how can we consider this industry is doing well?

These days, I am getting lot of calls from customers having lot of queries about carpet area calculations, property rate appreciations/depreciations in present & future, GST, how as a customer can take benefit of ITC under GST in under construction property, should hold the decision to buy a flat for some time, etc. I suggest them for some of the queries, but also saying wait & watch scenario is for everyone as of now. These above queries are really hits my mind, what is going to happen with this industry and Mr. PM Narendra Modi dream to have everyone houses by 2022?

These questions are coming from customers really alarm us to take decision for better policy for real estate industry, which can really help industry to recover at the earliest that would be better for everyone. Everyone is very positive & should be for DEMONITIZATION, RERA & GST but we need to introspect if this is the scenario in real.

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