Maharashtra Real Estate Sector Will Benefit From Sales Tax Amnesty Scheme

Mumbai, 14th March 2022: While presenting Maharashtra State Budget 2022-23 in the Assembly, Maharashtra Finance Minister and Deputy Chief Minister Ajit Pawar said that the state will be the first to have a $1-trillion economy. Among the highlights included the revenue deficit budget while announcing an Amnesty Scheme for Goods and Services Tax (GST) payees and a reduction of VAT on natural gas, among other tax concessions. This move has been lauded by those in the real estate sector as these were some of the suggestions that were presented in the past year by the industry with the objective to foster the growth of the industry.

Sandeep Runwal, President, NAREDCO Maharashtra and Managing Director, Runwal Group welcomes the government announcement of the Amnesty Scheme under the Stamp Duty Act as it will be applicable for pending penalties. He adds, “It will encourage people to come forward and pay the pending dues,  which in turn will help increase the tax collection. Similarly, the proposal to waiver the Stamp Duty of 0.1 percent on gold and silver imported in Maharashtra is a welcome move, too. As it will have a direct and indirect impact on the real estate sector.”

The State Budget is believed to be forward-looking as it focuses on a long-term plan for the state. It will pave the way for a sustainable and prosperous Maharashtra by putting five aspects into action: agriculture, health, infrastructure, transportation, and industry.

The real estate sector has been ailing for a long time and the state government has been taking several

proactive measures to boost the real estate sector in the state. For instance, Maharashtra was one of the first states to announce the reduction in stamp duty during the COVID-19 period, which led to a phenomenal increase in sales of unsold inventory in the state of Maharashtra.

Pritam Chivukula, Treasurer, CREDAI MCHI and Co-Founder and Director, Tridhaatu Realty says that State Budget 2022-23 is the need of the hour to boost the real sector in the state. “Real estate has direct and indirect 125 allied industries depending on it, like steel and cement among others. By coming out with these measures the State Government of Maharashtra is indirectly helping those 125 allied industries as well,” he elaborated.  “Real estate is one of the second largest employment generators in the country and contributes around 7 percent to the GDP. Therefore, the announcements made by the State Government this year are most welcome. In fact, it is the need of the hour,” he concurred.