CREDAI urges to remove GST on free flats given in redevelopment projects

Realtors' body CREDAI has demanded the government should do away with the GST on flats which are given free of cost to existing occupants in redevelopment projects to make them economically viable, especially in the Mumbai region.

A delegation from CREDAI and CREDAI-MCHI has met Union Finance Minister Nirmala Sitharaman and made a formal representation in this regard.

In the meeting, they expressed concerns over "the impact of GST being levied on redevelopment projects/ rehab flats which are being built and given back, free of cost, to existing occupants", CREDAI said in a statement.

With the regulations for redevelopment in Mumbai Metropolitan Region (MMR) coming under the ambit of DCPR 2034 that encourages such projects with a higher FSI (floor space index) allowed for developers, CREDAI MCHI said the GST being levied on such projects is defeating the very purpose of enhancing real estate value as it puts the financial feasibility of numerous projects under severe risk.

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