Struggling to pay a higher GST rate for construction projects, the Builders’ Association of India (BAI) requested the Centre to reduce tax rate for the private construction projects and make it on a par with the government infrastructural projects.
Apart from urging the government to cut the GST, the association has also demanded changes in approval system for real estate and infrastructure projects, as the present system takes 18 to 24 months.
“There is no coordination between State and Centre, and local bodies. This increases the cost of projects and ultimately consumers have to pay heavy for their houses. Single-window clearance system will provide relief to developers and consumers,” Rama Prabhu pointed out.
The association added in the petition that failure to accord clearance by the Environment Ministry has held up several Highway, power and industrial corridor projects, approximately worth Rs 7 lakh crore.
Hit by the frequent rise in cement prices, the BAI also urged the Finance Minister to constitute a Cement Regulatory Authority to control the prices, alleging that there was cartelisation in the cement industry. “The government should seriously consider complying with the recommendation of the Parliamentary Standing Committee for creating the Cement Regulatory Authority similar to SEBI, TRAI, IRDA and RERA,” Rama Prabhu added.
Apart from highlighting the issues facing the real estate industry, the association also sought an appointment to meet the Finance Minister to explain the issues in person.