New Delhi, April 9 India's real estate sector is likely to have lost about Rs 1 lakh crore so far amid the coronavirus crisis and the nation-wide lockdown.
Addressing the media on Thursday, Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO) said the conservative estimate of the losses to real estate as of the present is around Rs 1 lakh crore, and is rising with each passing day.
The industry body has sought a cut in goods and services tax and the suspension of insolvency proceedings in NCLT along with a relief package.
The realty body has asked the government to reduce GST across the board by 50 per cent for three months and 25 per cent for the fiscal. It also said that the final GST due should be payable in six quarterly instalments starting October 2020 with no interest.
Final income tax of FY 2019-2020 and advance tax FY 2020-2021 should be payable starting October 2020 in six quarterly instalments with no interest and 5 per cent GST on under construction real-estate to be scrapped/to be given full input tax credit, it said.
Hiranandani pointed out that global investors are waiting for Indian stocks to fall in value, to take over these listed companies at throwaway prices.
"Hence in lieu of protecting the Indian companies, suspension of NCLT law for at least six months is imperative to salvage the capital erosion," he said.
NAREDCO has also sought a stimulus of $200-300 billion for the economy, with $100 billion provided immediately, $100 billion in four months and the last $100 billion in eight months, among other relief measures.
"In fact, in 2002 our debt/GDP ratio was 100 per cent. If required, the FRBM Act can be modified to consider debt/GDP ratio as a metric and not fiscal deficit," said a NAREDCO statement.
( With inputs from IANS )