Udaipur, December 21, 2024 - The Central Government has proposed to impose an 18% GST on Floor Area Ratio (FAR) and additional FSI charges, a decision that may be finalised in the GST Council meeting scheduled for today, December 21.

If this is implemented, homebuyers will have to pay a higher price for their homes.

The builders' largest association, CREDAI, has expressed concerns about the new rule. CREDAI has stated that this move could increase home prices by up to 10%, adding financial pressure on people planning to buy homes and potentially reducing demand.

CREDAI also mentioned that an 18% GST on FSI would make a flat costing Rs 50 lakh, 5 lakh rupees more expensive, and a flat priced at Rs 1 crore would become Rs 10 lakh more expensive. CREDAI has urged the government to reconsider this proposal.

Source: Media Reports