Under the current PMAY guidelines, homes up to 30 and 60 sq meters in area and priced within ₹45 lakh qualify for the concessional 1% GST rate.
Kerala-based builders have sought the Prime Minister’s intervention for a revision of the affordable housing price cap under the Pradhan Mantri Awas Yojana (PMAY) scheme.
In a representation, T. A. Joseph, Managing Director, Confident Group, pointed out that the ₹45 lakh price cap established in 2015 has not been revised for nearly a decade. The construction costs, land prices, labour wages and raw material costs have gone up by around 30-35 per cent after Covid and delivering quality homes within the existing cap has become increasingly unviable, particularly to small and mid-sized developers.
Under the current PMAY guidelines, homes up to 30 and 60 sq meters in area and priced within ₹45 lakh qualify for the concessional 1 per cent GST rate. Homes priced above this threshold attract a 5 per cent GST which significantly affects affordability and discourages both home buyers and developers, he said.
Confident Group, according to him, handed over nearly 3,000 affordable homes across Kerala with an additional 1,700 units currently under construction. The Kochi-based builder said that an upward revision would enable a larger segment of home buyers to benefit from the 1 per cent GST concession. It would stimulate demand and employment across the construction and allied industries and encourage participation from small and medium-sized developers, suppliers and vendors.
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Published on June 15, 2025