By Bisheshwar Mishra / New Delhi
Union Cabinet today took some crucial decisions. It created a National Anti Profiteering Authority (NAA) under the Goods and Services Tax (GST).
Briefing about the decisions taken at the Cabinet meeting held here today, the Union Law Minister Ravi Shankar Prasad said the decision reflects government’s full commitment to take all possible steps to ensure benefits of GST implementation accrues to the common man.
He said, the authority will comprise a standing committee, screening committee in every state and Director General of safeguards in the central board of Excise and customs. Mr Prasad said, the constitution of NAA will bolster the confidence of consumer as they reap the benefits of recent reduction in GST rates.
He said, a NAA enables consumer to apply for relief if they feel reduction in prices is not passed on to them and for this an institutional framework has been provided to take appropriate remedial action.
The Minister said, in case the consumers do not get the benefit of reduction in prices, they can apply for the relief to the screening committee to the particular state.
In case the incident of profiteering relates to an item to mass impact the application may be directly made to the standing committee.
This decision apart, the cabinet also approved the decision to increase the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana.
The minister informed that the Union Cabinet chaired by Prime Minister Narendra Modi has approved the increase in the carpet area of houses eligible for interest subsidy under the CLSS) for the MIG under the Pradhan Mantri Awas Yojana (Urban)
To further enhance the scope, coverage and outreach of the scheme, the Cabinet has approved the following:
i. increasing the carpet area in the MIG I category of CLSS from the existing 90 square metre to “up to 120 square metre” and increasing the carpet area in respect of MIG II category of CLSS from the existing 110 square metre to “up to 150 square metre”; and
ii. making the above change effective from 01.01.2017 i.e. the date the CLSS for MIG had become effective.
The CLSS for MIG is a pro-active step in meeting the challenges of urban housing shortage. It also is a pioneering step to enable the Middle Income Group to access the benefits of an interest subsidy scheme.
The CLSS for MIG covers two income segments in the MIG viz. Rs.6,00,001 to Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum. In
the MIG-1, an interest subsidy of 4% has been provided for loan amounts up to Rs.9 lakh while in MIG-2, an interest subsidy of 3% has been provided for loan amount of Rs.12 lakh. The interest subsidy will be calculated at 9% NPV over a maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above 9 lakh and 12 lakh will be at non-subsidized rates.
The CLSS for MIG is currently effective up to 31.03.2019.
Impact
• The limit of 120 sq m. and 150 sq m. is seen as a reasonable enhancement and would cater to the market generally scouted by the MIG belonging to the two income categories specified in the scheme.
• The increase in carpet area will enable the Ml category of individuals to have a wider choice in Developers’ projects.
• The increased carpet area will also give a boost to the sale of ready built flats in the affordable housing segment.
Background:
Ministry of Housing and Urban Affairs is implementing the Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under the Pradhan MantriAwasYojana (Urban) since 1.01.2017 pursuant to Hon’ble Prime Minister’s address to the Nation on 31.12.2016 announcing increased benefits for poor people availing housing loans, and a new interest subsidy scheme for housing loans for the Middle Income Group (MIG).