In its pre-budget memorandum to the government, the National Real Estate Development Council (NAREDCO) on Tuesday suggested to rationalise Goods and Services Tax (GST) rate on under construction properties by bringing it down from 18 per cent to 8 per cent with land abatement.
"The real estate sector is passing through a difficult phase because of some harsh, though progressive, regulatory and financial reforms such as demonetisation, RERA. A number of measures suggested by NAREDCO, will help address the concerns of the industry to a large extent," said Niranjan Hiranandani, President, NAREDCO.
It also recommended promotion of rental housing and improvement in effective rate of return from rental housing through tax incentives.