Effective tax rate on complex, building, flat etc.

08 DEC 2018

It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.

Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.

Housing projects in the affordable segment such as Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of State Government etc., attract GST of 8%. For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.

For projects other than affordable segment, it is expected that the cost of the complex/ buildings/ flats would not have gone up due to implementation of GST. Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down.

PIB

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2,05,442 houses sanctioned under Pradhan Mantri Awas Yojana(Urban) in the 40th CSMC

Maharashtra gets 1,16,042 Houses, Karnataka-  31,657, Bihar-26,880, Tamil Nadu – 15,529 and Jammu & Kashmir – 15,334

28 NOV 2018

The cumulative number of houses sanctioned under PMAY(U) now is 65,04,037. The Ministry of Housing & Urban Affairs has approved the construction of another 2,05,442 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban). The approval was given in the 40th meeting of the Central Sanctioning and Monitoring Committee held here today.

Maharashtra has been sanctioned 1,16,042 houses while the sanction for Karnataka is 31,657 affordable houses.  The number of houses sanctioned for Bihar is 26,880, while Tamil Nadu has been sanctioned 15,529 houses and Jammu & Kashmir 15,334 houses.

A total of 392 projects with a project cost of Rs 7,391 crore with central assistance of Rs 3,082 crore has been approved in the meeting held under the Chairmanship of Sh Durga Shankar Mishra, Secretary, Ministry of Housing and Urban Affairs.

The approvals under the Beneficiary led construction(BLC) vertical is 85,227 while it is 1,20,215 under Affordable Housing in Partnership (AHP)vertical.

PIB

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Ministry of Housing & Urban Affairs

36th Central Sanctioning and Monitoring Committee (CSMC) Meeting of Pradhan Mantri Awas Yojana – Urban Sanctions a Total of 2,67,546 Houses from 10 States

Madhya Pradesh gets 59,421 Houses, Gujarat-55,296, Maharashtra-52,935, Uttar Pradesh – 36,370, West Bengal – 26,604, Bihar – 15,924

Ministry of Housing & Urban Affairs has approved the construction of 2,67,546 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban). The approval was given in the 36thmeeting of the Central Sanctioning and Monitoring Committee in its meeting held here today.

Madhya Pradesh has been sanctioned 59,421 houses while the sanction for Gujaratis 55,296 affordable houses.  The number of houses sanctioned for Maharashtra is 52,935, Uttar Pradesh 36,370 houses, West Bengal 26,604 houses and Bihar 15,924 houses.  Approvals given for Rajasthan stands at 8,600 houses while Chhattisgarh has been sanctioned 7,961 houses.  Punjab has been sanctioned 2,442 houses while the sanction for Uttarakhand is 1,993 houses.

With the above proposed houses, cumulative houses under PMAY(U) after subsuming projects of RAY scheme the total number of houses being funded under PMAY(Urban) would be 53,74,306 houses.

PIB

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Ministry of Personnel, Public Grievances & Pensions
PM addresses Civil Servants on the occasion of Civil Services Day

15 awards presented under various categories

Citizen is essential stakeholder of governance, says Dr Jitendra Singh

The Prime Minister, Shri Narendra Modi, today addressed Civil Servants on the occasion of Civil Services Day. He said the occasion is one of Appreciation, Evaluation and Introspection. He described the Prime Minister’s Award as a step towards motivating civil servants, and congratulated the awardees. He said the awards also indicate the priorities of the Government.

He said that the priority programmes such as Pradhan Mantri Fasal Bima Yojana, Deendayal Upadhyay Kaushalya Yojana, Pradhan Mantri Awas Yojana, and Digital Payments, for which awards have been given, are important programmes for New India.

Speaking on the subject of Aspirational Districts, the Prime Minister said that these 115 districts could become growth engines for their entire States. He stressed on the importance of Jan Bhagidaari, or public participation, in development. He said 2022, the seventy-fifth anniversary of independence, can become an inspiration for working towards achieving the India of the dreams of our freedom fighters.

The Prime Minister asserted that all available technology, including space technology, should be used for improving governance. He said it is important for civil servants to keep pace with emerging technologies worldwide.

He described civil servants as people with great capability and said that these capabilities can contribute in a big way, for the benefit of the nation.

The Prime Minister also released two books ‘New Pathways’ and ‘Aspirational Districts: Unlocking Potentials’. The first book ‘New Pathways’ is a Coffee Table Book consisting of significant details of 28 successful Innovations and 34 Success Stories relating to implementation of Priority Programmes viz., PMAY-U, PMAY-G, DDUGKY, PMFBY and Promoting Digital Payments in Districts shortlisted for Prime Minister’s Awards, 2018. ‘Aspirational Districts: Unlocking Potentials’ book relates to development of Strategies for transforming Aspirational Districts and the approach towards development of relevant social and other parameters. NITI Ayog is coordinating the initiative for development of Aspirational Districts.

During the event, “New India-shaping the future”, a film by DARPG was also screened. The film shows initiatives of the 11 districts/organizations selected for PM Awards this year.

Speaking on the occasion, the Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space Dr Jitendra Singh said that it is a platform for civil servants to share their best experiences. He said that during the last four years, the entire format of the Civil Services Day has changed and now the work done for implementation of priority programmes is rewarded under PM awards. He said that in the year 2016, only 74 districts had participated for the PM awards and this number has risen significantly to 599 districts in 2017 and to 643 districts this year.

The Minister also said that Prime Minister had given the mantra of ‘minimum government, maximum governance’. The citizens are essential stakeholders of governance, he added. Speaking about the grievance redressal mechanism of the DARPG, he said that now there is CPGRAMS Portal, dashboard and timelines to redress the grievances of the citizens. He added that the grievances have increased significantly from about 2 lakhs in a year in 2014 to about 16 lakhs in a year now. This is due to the fact that the department has been more responsive, sensitive and prompt to the grievances of the citizens. He also spoke about Pensions Portal, Anubhav and Jeevan Pramaan initiatives of the Department of Pensions & Pensioners’ Welfare. The Minister said that DARPG has also started holding regional conferences outside Delhi and has already held such conferences in places like Guwahati, Nagpur, Jaipur and Chandigarh among others.

The Cabinet Secretary, Shri P. K. Sinha said that this year four priority programmes have been chosen for PM awards. These include Pradhan Mantri Fasal Bima Yojana, Promoting Digital Payments, Pradhan MantriAwas Yojana – Urban & Rural, and Deen Dayal Upadhyaya Grameen Kaushalya Yojana. He informed that 103 out of 115 aspirational districts have participated for PM’s awards this year. He assured that the civil servants will work to fulfil the dream of Prime Minister’s ‘New India’.

Later the Prime Minister presented 15 awards to the winners in various categories. Under the priority programme, Pradhan Mantri Fasal Bima Yojana, District West Tripura (Tripura) was awarded under NE & Hill States category and Beed (Maharashtra) was awarded under Other States category. Under ‘Promotign Digital Payments’ Programme, Bishnupur (Manipur) was given award under NE & Hill States category, Daman (Daman & Diu) was awarded under Union Territory and Sonipat (Haryana) was awarded under Other States category. The Kangra district of Himachal Pradesh was awarded under NE & Hill States and Neemuch district of Madhya Pradesh given award under Other States category for Pradhan Mantri Awas Yojana (Gramin). For Pradhan Mantri Awas Yojana (Urban), Puducherry ULB (Puducherry) was awarded under UT category and Greater Hyderabad Municipal Corporation (Telangana) was awarded under Other States category. For Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Dhemji (Assam) and Karimnagar (Telangana) were given awards under NE & Hill states and Other states categories respectively. Under awards for Innovation, Disitrcit Administration Banka of Bihar was awarded for initiative Unnayan Banka – Reinventign Education using Technology and Team GST, Department of Revenue (GoI) was awarded for their initiative GST – One Nation, One Tax , One Market. Under innovation (AS/JS & Dir/DS category), Team India represented by Shri Shailendra Singh, AS & Shri Ravinder, JS, DIPP (GoI) was awarded for initiative Ease of Doing Business in India and Shri Yugal Kishore Joshi, Director, Ministry of Drinking Water & Sanitation (GoI) was presented award for Information, Education & Communication of Swachh Bharat Mission (Gramin).

Shri Nripendra Misra, Principal Secretary to the Prime Minister, Dr P. K. Mishra, Additional Principal Secretary to Prime Minister, Shri K .V. Eapen, Secretary, DARPG and other senior officers from various Ministries/departments also attended the event.

Source: PIB

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The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the increase in the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under Pradhan MantriAwasYojana (Urban).

To further enhance the scope, coverage and outreach of the Scheme, the Cabinet has approved the following:

i. increasing the carpet area in the MIG I category of CLSS from the existing 90 square metre to “up to 120 square metre” and increasing the carpet area in respect of MIG II category of CLSS from the existing 110 square metre to “up to 150 square metre”; and

ii. making the above change effective from 01.01.2017 i.e. the date the CLSS for MIG had become effective.

The CLSS for MIG is a pro-active step in meeting the challenges of urban housing shortage. It also is a pioneering step to enable the Middle Income Group to access the benefits of an interest subsidy scheme.

The CLSS for MIG covers two income segments in the MIG viz. Rs.6,00,001 to Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum. In
the MIG-1, an interest subsidy of 4% has been provided for loan amounts up to Rs.9 lakh while in MIG-2, an interest subsidy of 3% has been provided for loan amount of Rs.12 lakh. The interest subsidy will be calculated at 9% NPV over a maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above 9 lakh and 12 lakh will be at non-subsidized rates.

The CLSS for MIG is currently effective up to 31.03.2019.

Impact

· The limit of 120 sq m. and 150 sq m. is seen as a reasonable enhancement and would cater to the market generally scouted by the MIG belonging to the two income categories specified in the scheme.

· The increase in carpet area will enable the Ml category of individuals to have a wider choice in Developers’ projects.

· The increased carpet area will also give a boost to the sale of ready built flats in the affordable housing segment.

Background:

Ministry of Housing and Urban Affairs is implementing the Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under the Pradhan MantriAwasYojana (Urban) since 1.01.2017 pursuant to Hon’ble Prime Minister’s address to the Nation on 31.12.2016 announcing increased benefits for poor people availing housing loans, and a new interest subsidy scheme for housing loans for the Middle Income Group (MIG).

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Subsidy of up to Rs.2.60 lakh now available till March, 2019

Centre to look in to concerns of real estate industry to meet affordable housing targets

The central government today announced that the benefit of interest subsidy of about Rs.2.60 lakh on home loans under Pradhan Mantri Awas Yojana (Urban) will now be available for beneficiaries belonging to Middle Income Groups (MIG) fir fifteen more months beyond December this year.

This was announced by Shri Durga Shanker Mishra, Secretary (Housing & Urban Affairs), Government of India, while addressing the ‘Real Estate and Infrastructure Investors Summit’ organized by NAREDCO, in Mumbai today. He said that the government decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY(Urban).

Prime Minister Shri Narendra Modi, in his announcement on the 31st of December last year made applicable the Credit Linked Subsidy Scheme (CLSS) under PMAY(Urban) to MIG, till the end of December this year. Under CLSS, MIG beneficiaries with annual income of above Rs.6.00 lakhs and up to Rs.12.00 lakhs would get an interest subsidy of 4.00% on a 20 year loan component of Rs.9.00 lakhs. Those with annual exceeding Rs.12.00 lakhs and up to Rs.18.00 lakhs would get interest subsidy of 3.00%.

Reiterating the Government’s commitment to meet the Housing for All targets in urban areas by 2022, Shri Mishra urged private investors to invest in affordable housing, being promoted by the Government in a big way with several incentives and concessions.

Shri Mishra later an hour long discussions with a 30 member delegation of NAREDCO and assured them that the Government would look into various issues raised by them in all sincerity and possible interventions would be considered.

The delegation referred to what they called anomalies in GST rates for completed and under construction housing projects, Stamp Duties being higher and kept outside the purview of GST, scarcity of land, delays in granting construction permits, lack of coordination among different municipal agencies, RBI’s high risk weightage for lending to real estate sector despite Real Estate Act coming into force, inadequate bank financing despite Non-Performing Assets in respect of construction being much less than other sectors etc.

The delegation expressed concern over GST and other taxes accounting for over one third of the cost of residential properties.

Minister of Housing & Urban Affairs Shri Hardeep Singh Puri, who addressed the summit yesterday suggested to NAREDCO to have a detailed discussion with Secretary(HUA) for resolving the issues so that affordable housing could be given a boost.

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