On the 3rd and 8th of August respectively, the Rajya Sabha along with the Lok Sabha unanimously approved a bill to let the rollout of GST – Goods and Service Tax, that is known in order to one of the biggest tax reforms in In india. From the 1st of July 2017, GST was effectively levied in the world. This tax replaces multiple taxes levied by the central and state governments a lot of the direct and indirect taxes, including central excise duty, commercial tax, octroi tax/charges, Value-Added Tax (VAT) and service tax.
The Indian real estate sector has been having a significant transformation current times. The recently implemented (RERA) addressed assurance their level of accountability on real estate builders and developers and infuse transparency in the this sector has been revolutionary from the history of the Indian property sector. For the residential sector in India, the GST will definitely be a positive sentiment booster among property buyers.
Here is why the GST will have good direction effect on the Property Sector in India:
1. Low cost on under construction
GST will lower rate on items like cement, steel etc leading to considerably lower construction selling prices. This will lower the real estate prices and eventually thought about benefit to the common man.
2. Integrated tax system
It is generally crucial in the real estate industry to receive a uniform tax base. The builders and developers currently pay tax even on the buying their raw ingredients. GST addresses such issues by making all of the taxes uniform.
3. Revenue Neutral Rate (RNR)
The method of tax operation ultimately real estate sector does not sync between the VAT and service tax laws. Such a problem can be mitigated with the aid of GST that would help keep one transaction system – Revenue Neutral Rate (RNR) which is decided by the State Good and Services Tax (SGST) as well as the Central Goods and Services Tax Website and repair Tax (CGST) division.
4. Ease Compliances
With the help of GST, it are going to easier to take care of an audit trail for better control and monitoring, and completely benefiting the Indian industry sector. To be able to effectively reduce the complexity of compliance getting efficiency and smooth contact.
Overall, items and Service Tax (GST) will possess a marginal effect on the marketplace sector in days to come. There is actually going to remarkable improvements in buyer sentiments and alter perceptions that buyers have had against this sector. The Developers too will pick out the GST regime much advisable work with, with advantage of input tax credit being an added advantage.