The Confederation of Real Estate Developers' Associations of India (CREDAI) is the country's largest developers' body. Its national president, Shekhar Patel, and its president-elect, G Ram Reddy, have been among the most visible voices on the three policy issues that most directly change what a homebuyer pays and when they get the keys: GST, the definition of affordable housing, and the approval process.

CREDAI is a lobby, and its positions are advocacy, not analysis. That does not make them wrong, but it does mean buyers should understand what is being asked for, what has actually changed, and what has not. This article sets out their dated views and then Property Point's buyer reading.

First, the rules as they stand for a buyer

As Hindustan Times summarised in February 2026, the affordable-housing definition introduced in 2017 caps unit size at 60 sq m carpet in metros and 90 sq m elsewhere, with a price ceiling of ₹45 lakh. Under-construction homes inside that definition attract 1% GST; those above it attract 5%. Ready homes with an occupancy certificate do not attract GST on the sale. Separately, developers do not get input tax credit on residential projects under the current regime, which is why lower GST on materials does not flow through automatically.

Stamp duty and registration charges are a separate, state-level cost, which is why CREDAI's national leaders address GST to the Centre and stamp duty to the states. Tamil Nadu's own changes in 2025 and 2026 are covered in our companion article on CREDAI Tamil Nadu's positions.

Position 1: GST cuts on materials should lower costs (September 2025)

When the GST Council's 56th meeting cut GST on cement from 28% to 18% and on items such as marble, granite and sand-lime bricks from 12% to 5%, The Economic Times reported on 3 September 2025 that Shekhar Patel expected about a 5% saving in construction cost, to be passed on to homebuyers in due course. The same report noted that the benefit would not be immediate because developers are bound by existing contracts.

Not every CREDAI chapter agreed on the size of the effect. CREDAI-MCHI, the Mumbai-region body, told Hindustan Times on 4 September 2025 that the impact would be modest, because developers mostly buy through vendors and cannot claim input tax credit on residential projects.

What this means for buyers: do not expect a visible price cut

Construction is only one part of an apartment's price; land, approvals, financing and margin make up the rest. A saving of a few percent on construction cost translates into a smaller saving on the final price, and in a rising market it is more likely to slow price increases than to reverse them. Treat any developer claim of 'GST savings passed on' as something to verify against the previous price sheet, not as a given.

Position 2: scrap the ₹45-lakh cap (December 2025 to February 2026)

In December 2025, Fortune India reported that G Ram Reddy, CREDAI's president-elect, said the 2017 cap was outdated given inflation and construction costs, and that CREDAI had proposed raising it to ₹80-90 lakh or expanding the size limits. In February 2026, after a Union Budget that CREDAI said had not met its expectations, Shekhar Patel told Hindustan Times the body would keep pushing to remove the price cap altogether and define affordable housing by size alone, arguing that any fixed number would be overtaken by inflation within a few years.

Patel also said the affordable segment's share had fallen from nearly half of supply and demand in 2022 to about 18%, and warned it could fall below 10% if the definition stayed unchanged. He proposed an MSME-style credit guarantee so lower-income buyers with thin documentation could borrow from banks rather than at 14-18% from private lenders, and argued that home-loan interest should be deductible for buyers under the new tax regime.

What this means for buyers: plan on today's rules

  • As of early October 2026, we found no report that the ₹45-lakh cap had been changed. Assume 5% GST on an under-construction home priced above it.
  • If your home is close to the threshold, ask the developer to show the GST calculation on the agreement value, and check the carpet area against the 60 sq m metro limit.
  • Under the new tax regime, home-loan interest on a self-occupied home is not deductible today; CREDAI's request is a proposal, not law. Run your affordability numbers without it.
  • Ready-to-move homes avoid GST entirely, which can offset part of the price premium they command over under-construction stock.

Position 3: GST on construction contracts should fall (December 2025)

In the same December 2025 interview, Reddy said construction contracts attract 18% GST and argued this should fall to 12% or ideally 5%. In his words, “Any reduction in GST will directly be passed on to buyers.” CREDAI's national secretary, Gaurav Gupta, made the same request for work contracts. Reddy also highlighted wide variation in stamp duty and registration charges across states, citing about 7.5% in Telangana and higher elsewhere, and urged both the Centre and states to reduce them for affordable homes.

Position 4: delays are not always the developer's fault (October 2026)

Speaking to Hindustan Times at CREDAI's NATCON 2026 in Kolkata, in a report published on 3 October 2026, Reddy said developers are often blamed for delays caused by late approvals, occupancy certificates, and water and power connections. He also said the industry lacks adequately skilled and certified workers, and cited a CREDAI report projecting the Indian real-estate market to grow from about $600 billion in 2025 to $1 trillion by 2030.

What this means for buyers: allocate delay risk in the agreement

Whether a delay is the developer's fault or a utility's, the buyer bears the cost in rent and EMIs. Read the possession clause and the force-majeure definition in your agreement carefully; broad wording that includes 'delays in approvals or utility connections' shifts that risk to you. Ask whether the building plan approval, environmental clearance and fire NOC are already in hand, and check the developer's record of obtaining occupancy certificates on recent projects.

It also helps to understand where in the process a project stands. A project that has already obtained its major clearances and completed the structure carries far less approval risk than one at launch stage, even if the launch price is lower. Pay attention to whether utility connections, which Reddy specifically mentioned, have been applied for; a completed building without water and power connections cannot be occupied, whatever the agreement says.

How the GST rules play out in Chennai

The affordable-housing cap matters less in Chennai each year. Knight Frank's H1 2026 data, reported by The Times of India in July 2026, showed homes under ₹50 lakh falling to 12% of Chennai sales from 22% a year earlier, with most first-time demand now in the ₹50 lakh-₹1 crore band. In practice, most under-construction homes Chennai buyers consider already sit above the ₹45-lakh threshold and attract 5% GST.

As an illustration of why CREDAI is lobbying on the cap: on an agreement value of ₹45 lakh, 1% GST is ₹45,000, while 5% on the same amount would be ₹2.25 lakh. A buyer just above the threshold pays meaningfully more tax for a marginally costlier home. Ask your developer how the GST is computed on the agreement value, whether parking or other charges are bundled into it, and what portion of the payment schedule falls before and after the occupancy certificate.

Property Point's overall read

CREDAI's national leadership is pushing for changes that would, if adopted, lower the tax on mid-priced homes and widen access to formal credit. Some of the underlying data they cite, such as the shrinking affordable share, is consistent with independent consultancies. But most of these requests remain requests. Buyers should price their purchase on the GST, stamp duty and tax rules in force today, treat promised pass-through of savings with healthy scepticism, and negotiate delivery terms as if delays are possible.

This article is general information, not investment or tax advice; confirm current GST and tax rules with a qualified adviser before buying.