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The Goods and Services Tax (GST) is a consumption tax levied on goods and services in India. The tax was introduced on 1st July 2017, to replace multiple indirect taxes imposed by the central and state governments. The GST is divided into four tax slabs - 5%, 12%, 18%, and 28%. Recently, there has been a demand for a lower GST rate on services linked to flat construction.
The construction sector is a significant contributor to India's GDP and employs millions of people. The sector has been hit hard by the COVID-19 pandemic, which has led to a decrease in demand and an increase in input costs. The government has taken several steps to boost the sector, including the announcement of the Atmanirbhar Bharat Abhiyan and the launch of the PMAY scheme.
The demand for a lower GST rate on services linked to flat construction has been made by builders and developers. They argue that the current GST rate of 18% on such services is too high and is leading to an increase in the cost of housing. The builders and developers have been asking for a lower GST rate of 12% on services such as construction, engineering, and architectural services linked to flat construction.
The builders and developers argue that a lower GST rate would help reduce the cost of housing and make it more affordable for the common man. They also argue that a lower GST rate would help boost demand for housing and create jobs in the construction sector.
The demand for a lower GST rate on services linked to flat construction has been supported by the Confederation of Real Estate Developers' Associations of India (CREDAI). The organization has written to the Finance Minister and has urged the government to lower the GST rate to 12%.
The demand for a lower GST rate on services linked to flat construction has also been supported by homebuyers. Homebuyers argue that the current GST rate of 18% is too high and is making it difficult for them to buy homes. They also argue that a lower GST rate would help reduce the cost of housing and make it more affordable for the common man.
In conclusion, the demand for a lower GST rate on services linked to flat construction is gaining momentum. Builders, developers, and homebuyers are all in favour of a lower GST rate, arguing that it would help reduce the cost of housing and boost demand in the construction sector. It remains to be seen whether the government will take any action on this demand.
For any further doubt on matters related to GST, feel free to contact ASC Group.
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