The CREDAI group stated that the construction industry which is reviving gradually post the pandemic is affected once again due to the price increase of materials.
Coimbatore: CREDAI stated that the construction industry is shaken due to the spike in material prices and the GST being a No Input Credit.
The construction costs have escalated in the last six months, from April to September, due to the extensive hike in the material costs. Cement prices are ₹.480-520, risen by over 280-300 in March last year. Similarly, steel prices have increased from ₹.42,000.00 per tonne to ₹.76,000.00 per tonne. Also, the prices of home essentials, hardware, sanitary, electric, PVC have also gone up by 30-50 per cent and cost of transports has also increased due to increase in fuel prices.
The President of The CREDAI, Coimbatore chapter Gugan Ilango said, "Due to increase in material costs, the price of construction has also gone up from Rs 300 to Rs 400 per sq.ft. This has taken a heavy toll on construction workers and real estate developers. Most middle-class families construct houses for a low cost. The industry that was reviving gradually post Covid, is once again on the path of decline, due to price hike. It has created discontent among customers.”
CREDAI Secretary Rajiv Ramasamy speaking about the GST of the Construction industry said, "GST cannot be rebated by construction companies (No Input Credit). GST paid is Rs 220- 250 per sq ft. We have therefore urged the Centre and the State Government to restore the tax rebate and protect the real estate industry, which will help achieve the goal of affordable housing for everyone. We have also requested to curb the increase in the price of raw materials. Moreover, the livelihood of construction workers should be protected from being affected.”
The construction costs have escalated in the last six months, from April to September, due to the extensive hike in the material costs. Cement prices are ₹.480-520, risen by over 280-300 in March last year. Similarly, steel prices have increased from ₹.42,000.00 per tonne to ₹.76,000.00 per tonne. Also, the prices of home essentials, hardware, sanitary, electric, PVC have also gone up by 30-50 per cent and cost of transports has also increased due to increase in fuel prices.
The President of The CREDAI, Coimbatore chapter Gugan Ilango said, "Due to increase in material costs, the price of construction has also gone up from Rs 300 to Rs 400 per sq.ft. This has taken a heavy toll on construction workers and real estate developers. Most middle-class families construct houses for a low cost. The industry that was reviving gradually post Covid, is once again on the path of decline, due to price hike. It has created discontent among customers.”
CREDAI Secretary Rajiv Ramasamy speaking about the GST of the Construction industry said, "GST cannot be rebated by construction companies (No Input Credit). GST paid is Rs 220- 250 per sq ft. We have therefore urged the Centre and the State Government to restore the tax rebate and protect the real estate industry, which will help achieve the goal of affordable housing for everyone. We have also requested to curb the increase in the price of raw materials. Moreover, the livelihood of construction workers should be protected from being affected.”