Builders and Consumers Oppose 18% GST on FSI, Fear Surge in Housing Costs in Pune and Mumbai

1. House prices in Mumbai, Pune, and other cities have been on the rise, causing concern among consumers and real estate developers alike.
2. The proposal to impose an 18% GST on the Floor Space Index (FSI) of houses has sparked significant opposition from groups like the Akhil Bharatiya Grahak Panchayat (ABGP) and industry experts.
3. The GST Council’s plan to apply the tax to both the original and additional FSI of properties has raised alarms within the construction industry.
4. Experts predict that this move could lead to a 10% increase in house prices, particularly affecting the middle class, who make up a significant portion of homebuyers.
5. Ranjit Naiknavare, President of CREDAI Pune Metro, has urged the government to reconsider this proposal, as it could make housing projects economically unfeasible.
6. The ongoing opposition to the GST on FSI reflects concerns about the impact it could have on housing affordability for many families.
7. With house prices already on the rise due to factors like the Covid-19 pandemic, adding GST to the FSI could further exacerbate the problem.
8. It remains to be seen how the government will respond to these concerns and whether any changes will be made to the proposed tax on FSI.

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