Ready-to-move-in units to get costlier

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“Prices of ready-to-move-in properties might go up in the near term. Although GST gives an option to get full input set-off credit for developers, it is not applicable on ready-to-move-in properties. Hence developers will either have to bear the tax burden or increase the price in line with the taxes. As the tax rate to the end consumer is also higher under GST, it will impact sales over the next few months. The customers have to pay an additional under GST 3-6.5 per cent depending on the state.”

Ashok Naidu

Director, Kumari Builders and Developers