NEW DELHI: Giving a fillip to the realty sector, Union Finance Minister Piyush Goyal on Thursday asked the bankers to meet realtors and loosen their purse strings to ease the sector’s funding problems.
“There is a real problem (being faced by the realty sector),” Piyush Goyal said in his address at a CREDAI event.
The minister asked state-run banks to meet realty sector representatives to discuss stalled projects in two weeks. On the other hand, he asked the realtors not to over-leverage loans and drive away the banks from lending to them.
Goyal said the government is considering giving relief to the real estate sector and the next GST Council meeting could take some steps to address their issues. SBI chairman Rajnish Kumar was also present at the event.
The minister also advised the realty sector to sell off inventory even in the current pricing about which the realtors complain as being low. He had been asking banks to step up lending to the housing sectors.
Goyal also assured that Goods and Services Tax (GST) rates would be brought down soon for the sector, which has been pending since a long time. “I hope you will like the final consensus of the GoM. In the next meeting of the GST Council, it would be discussed,” he said.
A state ministerial panel last week favoured lowering GST on under-construction residential properties to 5 per cent from 12 per cent currently. It also favoured slashing GST on affordable housing from 8 per cent to 3 per cent. However, he hinted that it might be without input tax credit.
“Here I will seek your support that you accept what the GST Council decides and this is in your interest also. You will be spared of queries from officials over small issues like if you have passed on the input tax credit to the consumers or not, being pushed to the anti-profiteering tribunal. I think that will be the biggest benefit to you all,” the Finance Minister added.