Karnataka wants 18 per cent GST on housing projects removed

Jayachandra told reporters that because of 18 per cent GST, beneficiaries have to pay adan ditional Rs 1.5 lakh for the construction of houses, which is a burden on the economically weaker sections.
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BENGALURU: Karnataka’s Special Representative in New Delhi TB Jayachandra said the state government will soon approach Prime Minister Narendra Modi, seeking removal of 18 per cent GST on various housing projects taken up under State and Central government schemes.

Jayachandra had taken part in a review meeting on housing projects where Housing Minister Zameer Ahmed appealed to Jayachandra in this regard. Jayachandra told reporters that because of 18 per cent GST, beneficiaries have to pay additional Rs 1.5 lakh for construction of houses, which is a burden on the economically weaker sections.

According to Jayachandra, there are 2,865 slums in the state, of which 635 are in Bengaluru. The state government has proposed to spend Rs 3,682 crore to develop these slums. During the review meeting, they decided to convey this message to the Union government. Jayachandra also said that under the PM Awas Yojana, they have the target of constructing 45,124 houses, of which they have completed 8,287 houses. As many as 31,626 houses are under construction.

“We are unable to provide roads, drainage, drinking water, power connection and other facilities,’’ he said. They discussed the issue during the meeting and appealed to the Union government for Rs 660 crore to provide these facilities.

“This amount has to be released by the Union government,’’ he added. Zameer Ahmed said they have placed a proposal to develop 171 minority colonies at the district and taluk levels. “If the Central government releases funds in the ratio of 60:40, we can take up these colonies,’’ he said.

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