Should one demand 6% discount from builders

Not exactly, but in extra features offered to the extent allowed. more  

May care to and read through the INput >https://www.facebook.com/swaminathanv3/posts/1639888079420805 more  

yes more  

Before GST. service tax was payable at two rates (1)If builder was taking Cenvat credit the rate was full, and (2)If the builder is NOT TAKING Cenvat credit the rate was concessional(since some builders were unable to count/calculate the input Cenvat credit ). If the practice of two rates is continued after GST, the builder/service provider should declare on the receipt/invoice the practice he is following. more  

If the project is for higher income group, I am sure that even 6% rebate on GST may be a substantial amount. However most of the money / cost for the projects go for 1. Land costs (which are exorbitant in the Metro cities like Mumbai, Delhi, Bengaluru, etc.). Land costs are beyond reach of an average middle class. Lower class can forget about purchasing land. Anything between 25 to 75% of the project costs are land price. Sometimes the construction costs are hardly comparable to the land prices. 2. Construction costs. The major cost of construction goes to steel & cement. What the real estate industry is unable to control is the building material prices which can easily reduce the overall costs by major proportions. However the steel & the cement industry is not doing enough for the same. Steel & Cement together account for approximately 25% of the overall costs of construction (in many cases, even more). 3. Hidden costs - Documented costs vs undocumented costs. Often most builders have to pay for costs including corruption charges simply to survive. These costs cannot be included in the GST even though the corruption costs do not go to private industry, but the very government systems & officials which levies taxes and asks citizens to be honest tax payers. Hidden costs which are un documented could be as high as 5% of the overall project cost. 4. Government has apparently given off 12% GST rebate on the projects which come under affordable housing. 5. Wastage during construction. Often a huge amount of building materials is wasted due to poor site management. The amount can run to almost 5% of the overall project costs. These can be intelligently saved. 6. Cartage & Conveyance - Petrol prices play a crucial role in the high costs of cartage & transportation of building materials. Since the building materials weigh a lot, hence it is advisable to procure local materials. If the fuel prices go down to 2004 levels, only then around another 5% of the overall cost burden can be taken care of. Hence there are many ways to save money. However we need to work it out collectively. I have written an article on the basic Indian condition. Which co-relates the income categories to the housing requirement. Please go through it, it may be useful- https://www.linkedin.com/pulse/what-should-housing-mix-ratio-per-sale-price-chitradeep-sengupta/ more