In the recent years, probably one of the most hyped news in the world of finance and commerce in India is the GST, i.e. Goods and Services Tax. People are curious to know more about the subject. Both the buyers and the sellers want to know more about the predicted implications of the uniform taxation regime better known as the GST. Our discussion will be centred around the real estate and how this tax is going to impact the buyers of real estate properties in India. Buy Flats in Noida Extension and Flats in Ghaziabad with different sizes. Gaur City 14th Avenue Location / Gaur Yamuna City Location / Gaur City Center Location / Gaur Atulyam Location
GST Impact on Real Estate:- The real estate industry in India plays an immensely important role in building its GDP or Gross Domestic Product. It accounts for 5% of Indian GDP. As per E&Y (Ernst & Young) reports, the real estate industry is the second largest employment generator of India. Even this large sector is facing certain big issues like the confusing trend of multiple indirect taxation- the service tax, VAT, registration fees and stamp duty. As per the reports that we have received still now, it looks like GST is going to replace the multiple indirect taxation. This news has clearly brought a positive signal for the home buyers. Let us check it in details in the following paragraph. The Possible Benefits of GST:- Since we have already mentioned that GST is going to replace other multiple indirect taxes, the buyers of flats in Noida, Delhi, Mumbai, Chennai and many other Indian metropolitan cities would love to pay it. They love the fundamental idea behind the formation of GST that is transparency.
Previously the taxes were not separated properly. Hence, there was a possibility of double taxation. Hopefully, GST will bring a welcoming change in this matter. The predicted rate of GST might be kept lower by the government if we believe the press conference held by the honourable Finance Minister Mr. Arun Jaitley after the passing of the bill in the Rajya Sabha. He said, “We will sincerely do everything to keep it as low as possible”. He added that the predicted slab might stay within 17 to 19 per cent.
In addition to the above-mentioned reasons, due to the irrelevance of indirect tax payment, GST will not affect the buyers of ready-to-move-in-properties. With respect to the under-construction properties, still now, the buyers need to pay the service tax and the VAT or the Value Added Tax to buy a brand new unit. While the service tax is levied by the Centre and is fixed at 15 per cent, the VATs are levied by state governments. Each state has different VAT percentage (as per the state rule). The unified taxation format of GST will replace this pattern. It is a welcoming change. The Opinions of the Industry Experts:- The experts of real estate property in Noida welcome the rise of GST. According to them, the expected returns from GST is expected to add 2 percent to the Indian GDP. This will be an amazing boost to the Indian economy. If the economy does well, there will be greater demand for the real estate. Thus, the real estate sector will accelerate further.
