Positive Impact on Real Estate in India After Implementation of GST

On the 3rd and 8th of August respectively, the Rajya Sabha and also the Lok Sabha unanimously approved a bill to give the rollout of GST – Goods and Service Tax, that is known to be able to one of the biggest tax reforms in Sweden. 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 kinds 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 going through a significant transformation the recent times. The recently implemented (RERA) addressed assurance the actual world level of accountability on real estate builders and developers and infuse transparency in the this sector has been revolutionary in the history of the Indian property sector. For the residential sector in India, the GST will definitely be a positive sentiment booster among property prospective.

Here is why the GST will have a positive 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 costs. This will lower the real estate prices and eventually certainly benefit to the common man.

2. Integrated tax system

It is generally crucial in the real estate industry getting a uniform tax base. The builders and developers currently pay tax even on the acquiring their raw options. GST addresses such issues by making all of the taxes uniform.

3. Revenue Neutral Rate (RNR)

The method of tax operation from the real estate sector does not sync between the VAT and service tax laws. Such a problem can be mitigated with the assistance of GST that would help keep one transaction system – Revenue Neutral Rate (RNR) which is decided by the State Good and Services Tax (SGST) along with the Central Goods and repair Tax (CGST) areas.

4. Ease Compliances

With the assistance of GST Online Registration in India, it are usually easier to take care of an audit trail for better control and monitoring, and completely benefiting the Indian industry sector. It will certainly effectively lessen complexity of compliance bringing in efficiency and smooth transaction.

Overall, the goods and Service Tax (GST) will possess a marginal relation to the industry sector in days to come. There in order to remarkable improvements in buyer sentiments and change perceptions that buyers experienced against this sector. The Developers too will look for GST regime much better to work with, with the advantages of input tax credit being an additional advantage.