Probing builders for not passing on GST benefit too harsh, say realtors

Demonetisation, Rera and GST have impacted the sales and cash flows of developers, causing a spurt in consolidation in the sector

The proposed move of the National Anti-profiteering Authority (NAA) to investigate property developers for not passing on the benefits of lower taxes under the goods and services tax (GST) regime is a new tool to harass real estate firms, some developers told Business Standard.

"There is unnecessary harassment for developers whenever a new policy comes up. In fact, there is out-of-pocket expense for developers even after charging GST from buyers," said Getamber Anand, chairman of ATS Infrastructure and chairman of Credai (Confederation of Real Estate Developers Association of India), an industry body.

"We want the government to bring down the GST rate