Realtors’ appeal for GST rate cutting

In a letter to the GST Council, brokers have requested that real estate agents be released from GST on services provided for affordable housing.

The Association of Certified Realtors of India (ACRI) has appealed to the housing ministry to reduce the 18% goods and services tax (GST) levied on brokers on the brokerage they earn from builders on each transaction and make it 5%.

Reduced GST on brokerage will help them overcome trouble and give better job opportunities to their community in coordination with the GST Council.

Brokers said they were fighting with a slowdown in sales and getting it difficult to sustain as builders refused to pay GST levied on sales.

“No builder is ready to pay GST on the brokerage. The channel partners are already squeezed; this is just an additional burden,” said Irshad Ahmed, president, National Association of Realtors.

The ACRI and the National Association of Realtors had also appealed to the central committee to withdraw the 5% fine on brokers. “The finishing and delivery of projects are not in our hand. We are only a marketing member and reliant on the information was given by the developers and authorities,” said Aggarwal.

The service tax levied on real estate agents’ services was raised to 14% from 12% in June 2015, just before GST was levied on realtors. The GST rate applicable for all services provided under the heading ‘real estate services’ on a fee or commission basis or contract basis and for services by way of renting of a residential home for use as residence is excluded from GST. Other rental aids attract GST at 18%.