CHENNAI: Transparency in tender and approvals, providing a time-frame in granting planning permission and approvals as well as reduction in Goods and Service Tax for construction sector will be the key issues which will be pushed by the Builders Association of India, according to new office-bearers of the organisation.
L Venkatesan and K S Ramaprabhu, who have been elected chairman and vice-chairman of the BAI respectively, said the GST has been hitting the construction sector hard. The government has hiked the GST rate for the construction sector to 18% from 12% last year. As a result, construction of complexes, buildings and civil structures intended for sale to buyers, wholly or partly, will attract a GST rate of 18%. The builders want it to be on a par with GST imposed on government projects, said Rama Prabhu.
"The real estate sector is very sick after demonetisation and the GST," explained Venkatesan. "As the Builders Association, it is our duty to work towards restoring the health of the sector. It is with this intention that we are representing for the GST on the sector to be reduced to 12% as no one is coming forward to buy flats. If the GST is reduced, it will be an incentive for people to buy flats and houses."
Besides, the construction sector is facing transparency issues when it comes to getting approvals. Rama Prabhu wanted the system of entire planning permission and approvals to be online while Venkatesan wanted transparency in the tender process.
Prabhu wanted a fixed deadline in granting approvals. It should be either 30 days or 45 days or it should be treated as deemed approval, he said.
The new office-bearers were installed by R Radhakrishnan, former national president of the BAI. The other new office-bearers included L Shanthakumar, secretary, R Parthiban, treasurer and R R Sridhar, joint secretary.