Residential Plots Near PGI Chandigarh | How Will GST Impact On Real Estate ?

Everyone knows that how was difficult to calculate a gross tax at the earlier time. The tax was according to property construction status and state where it was located. VAT, Service Tax, Stamp Duty, Registration Charges on the purchase of an under construction property was the many taxes and another state did their another tax slab. So the tax calculation was very tedious in the early regime.

GST(Goods and Services Tax) is a simple tax that applies to the overall purchase price, it means one has to pay tax in a very simple manner. Since GST announcement, all pre-taxes like VAT, Service Tax, Stamp, etc. will not go to penetrate taxpayers. It means GST is going to remove the complex and indistinct tax structure plaguing the country. Right now, An effective rate of 12% will need to pay by the buyer for an under-construction property.

-As a home buyer, My concerned how will GST impact you. Will it reduce the prices?

After GST, I am not going to waste on forecasting, what industry person and government was announcing. But, now we are looking that the property rates are consistently going down, so it a good time for the home buyer to buy or invest in property. Government is also keeping surveillance on GST on monthly basis to make better for people and industry. We can see that there are remarkable improvements in buyer sentiments and change perceptions buyers. I think due to this only there are Residential plots Near PGI Chandigarh, which is very low in rates in comparison to their own previous time.

-As a Developer, My concerned how will GST impact you?

Under the previous tax regime, a developer was subject to Customs duty, VAT, Excise duty and Entry taxes on the construction material cost. Including all charges like legal fees, architect fees, approval charges, labour charges, many more developers paid service tax of 15% approximately. But it is now 12% only. It means builders and developers was paying tax even on the purchase of their raw materials. But now GST is addressing such issues by making all the taxes uniform. Finally this integrated tax paying system is looking very helpful to developers.

-As Indian Government, My concern how will GST impact?

After in use of GST, right now the government have a common platform to govern the compliance and redressal of taxation issues. If the problems are resolved quickly, then developer and investors will be able to do their work smoothly. Hence, the whole industry will boost. And also there is no any jurisdiction overlapping between states and Centre with regards to the collection of services and goods.