GST price hike in bricks from 5 to 12 percent

Published on December 3, 2022 by

Goods and Services Tax (GST) rate of bricks has been increased to 6 percent

The financial breakdown occurred due to the increase in GST of bricks from 1 percent to 6
percent in recent times.
Shankar Kumar, a buyer said, “Government’s new policies of GST affect us a lot. Everyday
there is something new increasing. I also don’t know for how long we have to live in a rented
house. So, the government have to think about ourselves also whenever he is coming out with
such schemes. The middle-class family is saving for Rs 25 to 30 lakhs for one house and then
this policy comes and all these savings get wasted.”
Due to the increase in prices of GST, clay bricks rates have increased from Rs 6 to 7 per brick to
Rs 11 to 12. Buyers are facing a lot of problems to buy a new flat as this increment affects them
Manohar K, a builder said, “We are dealing in clay products. The GST has increased from 5
percent to 12 percent that’s the main reason customers are facing problems. Afterall 7 percent
increase Is there. We are facing a business crunch also due to customers not coming further to us.
We are not coming further to us. We are not earning more that’s why we didn’t pay labourers.

Builders from the site are saying about how GST affects them as they don’t have enough money
to pay labourers also.

Manohar added, “Also, workers are demanding more salaries. Transporters also demand more.
Our profit is less. Clay is an eco-friendly material as it will be less warm. When you use cement
there will be more heat.”
Earlier, a registered person involved in the manufacturing and trading of bricks was charged
GST at 5 percent and could claim the credit on inputs. As per Notification no. 02/2022 integrated
tax rate, the GST rate has been increased to 12 percent with ITC.
An officer from Karnataka Real Estate Regulatory Authority says that Government should bring
such policies that at least if a person paid a certain amount before these GST policies, they don’t
have to give more amount after that including the GST.
Yash Sharma, an Officer of the Real Estate Regulatory Authority said, “Nowadays Government
is kept on increasing GST. As a builder labour cost is increased and also commodity cost is also
increased. So, it is very difficult for us to meet their ends meet. Also, the buyer is also suffering
because they are not able to get the property even if they are paid in full so they have to give the
GST. This is creating chaos between the builder buyer and also our life.”

Category Tag

Add your comment