The revised rates are expected to revive customer
Affordable housing has been defined as a house or flat having a value of up to Rs 45 lakh and carpet area of up to 60 square metres (646 square feet) in metro cities (Delhi NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad) and construction anchor 90 square metres (969 square feet) elsewhere.For projects priced higher than this level, due to the inherent valuation of land being higher, the increase in input costs will be more than compensated by the reduction in GST payable, which is calculated on the entire sale consideration including implied land value. However, in the near term, sales and collections in launched projects are likely to be disrupted by the change in tax computation method, as witnessed during the initial implementation of GST in July 2017..New Delhi: Credit rating agency ICRA said on Tuesday that lower GST rates for under-construction residential properties are expected to improve customer sentiment but removal of input tax credit may create short term disruption in sales and collections from ongoing projects in the near term.
Thus, customers in such segments are likely to benefit significantly from the reduction in rates.These rates will be without input tax credit availability for the developer."As the shift to the new rates happens, managing customer expectations on the revised pricing in ongoing projects where base price under earlier rates have already been announced will be a key challenge for developers, especially at the lower ticket sizes."As per ICRA’s estimates, assuming an 18 per cent input tax incidence and cost of construction of Rs 2,000 to 2,500 per square feet, if developers are to pass on the increase in cost entirely to customers, there may be an effective increase in total outflow for customers where sale price is up to Rs 6,000 to 7,000 per square feet.
"The revised rates are expected to revive customer interest in under-construction properties."The earlier GST rates of 8 per cent and 12 per cent were a dampener for customer buying sentiment during under-construction stage considering the high value of such transactions, leading to increased preference for completed properties," said Mathew Kurian, Assistant Vice President at ICRA. However, over the long term, a lower headline GST rate is likely to provide a boost for consumer sentiment and supportsales during construction stage as the perceived differential on tax rates between the segments will narrow," said Kurian.The GST Council in its meeting on Sunday recommended reduction in GST rate on under-construction residential properties to 1 per cent from 8 per cent for affordable category and, to 5 per cent from 12 per cent for those outside the definition of affordable housing
Expressing satisfaction over the pace of work
Elaborating on the status of the second longest upcoming corridor between Botanical Gardens and Janakpuri West, Mr Singh said that the physical construction work on the corridor is almost complete. The trials on this corridor , connecting many places of historical importance including Jama Masjid, will start from July. Barring the two-km stretch yet to be completed due to non-availability of land pockets at Trilokpuri, Naraina and Punjabi Bagh, the construction work on the 58.
"Only about a two-km stretch on the 36-km corridor is yet to be completed.Mr Singh added that the upcoming Heritage Corridor from Central Secretariat to Kashmere Gate, which drop in anchor had faced hurdles initially due to permissions not being granted for construction, is also nearly complete.He said that the trial run on the Majlis Park-Lajpat Nagar stretch will start by October and on the IP Extension-Shiv Vihar section of the Delhi Metro’s longest upcoming corridor will also start by October.
"The trials on the Lajpat Nagar to IP Extension stretch would start tentatively by December 2016," Mr Singh said. Pointing out that the construction work for the Phase II of the Delhi Metro’s expansion was relatively easier as the DMRC had started preparatory work much before the corridors were commissioned. The trial run on the Botanical Garden to Kalkaji stretch on the corridor will start from July, while Janakpuri West to IGI and IGI to Kalkaji will start in September," he said.Unavailability of land pockets has delayed the completion of construction work on the longest upcoming Metro corridor that will connect Majlis Park to Shiv Vihar.
Expressing satisfaction over the pace of work, DMRC chief Mangu Singh said that physical construction work, including viaduct and tunnels, had almost been completed on other upcoming corridors as well and the trial runs will start from July.The Delhi Metro chief said that some sections of the upcoming corridors will be thrown open for the public this year itself.
The total cost incurred for the Phase III construction is around Rs 36,000 crore," he said. "The biggest challenge during Phase III is that the construction had to be done in more congested areas as the corridors are more towards the central parts of the city.5-km corridor is almost complete
The scheme will transform the lives of these
The Atal Aahar Yojana will be implemented in some areas of the state on a pilot basis and later, the scope of the scheme will be expanded.
We plan to register about 24 lakh labourers in the near future, said the CM.The state government will provide all possible help in terms of education, income and health to construction workers. The scheme will transform the lives of these labourers, said Mr Fadnavis. Whereas under the Shramev Jayate scheme, the labourers will be provided pension.
Ahead of Lok Sabha (LS) polls, the state government on Thursday launched a special scheme for construction workers in the state called "Atal Aahar Yojana," which will provide good quality, hygienic food to construction workers.5 lakh labourers have been registered so far.Under the Jan Aarogya Yojana, the labourers are provided with medical facilities up to Rs 1. In the first phase, the target is set to 20,000 workers at a nominal cost of Rs 5. It is already providing a subsidy of Rs 4. In case of the labourer’s death, pension wedge anchors for sale will be given to his widow, he added.5 lakh to labourers for house construction, he added.Under the Shramev Jayate Yojana, a pension of Rs 3,000 is given to construction workers above the age of 60 years.Chief minister Devendra Fadnavis launched the Atal Aahar Yojana in Nagpur. Under the scheme, 2.
However, we will not stop at just registering their names; we will also try to provide benefits of every welfare scheme to them..5 lakh."Under the Atal Aahar Yojana, construction workers will be provided nutritious food at their workplace for just Rs 5. "Nearly 10 lakh labourers have been registered with the Labour Board in the state so far