Budget 2019 Expectations: Real estate developers demand tax realisation for GST from Nirmala Sitharaman

Budget 2019 Expectations: Real estate developers demand tax realisation for GST from Nirmala Sitharaman

The real estate developers have demanded from the Narendra Modi government to grant tax realisation for the GST being levied on them. The industry insiders are of the opinion that the GST input credit is allowed on works contract services for the construction & interior of office (commercial real estate) since it has a direct connection with the carrying out of business activities. They said that Modi 2.0 Government should consider allowing centralized GST return for suppliers providing works contract services in various states and thereby reducing the compliance burden.

Speaking on the reason for pressing this demand Gaurav Kashyap, CEO Cherry Hill Interiors said, “GST input credit be allowed on works contract services for the construction & interior of office (commercial real estate) since it has a direct connection with the carrying out of business activities. Thereby incentivising the industry to undertake Capital expenditures. Input supplies to be made GST exempt for the suppliers who are making supplies to SEZ units and thereby supporting those suppliers in maintaining there working capital position which gets blocked in the shape of GST refunds on account of supplies to SEZ units/developers.”

Giving his views on the issue, Rakesh Yadav, CMD, Antriksh India Group said, “Government should consider allowing centralized GST return for suppliers providing works contract services in various states and thereby reducing the compliance burden. Expedite GST refunds for SEZ projects and MSME companies and the complete refund should be released with 45 days of the filing of the application.” Yadav of Antriksh India Group further added that the Finance Minister Nirmala Sitharama should grant industry status to both real estate developers and the interior industry when she stands to present the budget 2019 on July 5th.

[“source=zeebiz”]