CREDAI-MCHI urges finance minister to change redevelopment projects’ GST structure

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Key Points

Real estate developers have approached the Ministry of Finance with their concerns over the impact of the Goods & Services Tax (GST) being levied on rehabilitation apartments being built and given back, free of cost, to existing occupants as part of redevelopment projects...

The Confederation of Real Estate Developers' Association of India (CREDAI) - MCHI, has written to Finance Minister Nirmala Sitharaman to request a change in GST structure to ensure viability of redevelopment projects in Mumbai Metropolitan Region (MMR)...

Real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbais property market as the land-starved city has few vacant land parcels..

However, the developers body believes that the GST being levied on the same defeats the purpose of rehabilitating existing tenants and enhancing real estate value as it puts the financial feasibility of numerous projects under severe risk...

The economics of redevelopment projects, a type of an urban real estate renewal method where realty players takeover old buildings and rebuild them, is facing challenges due to higher GST costs...

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