Impact of GST on Real Estate Sector

Impact of GST on Real Estate Sector

Impact of GST on Real Estate Sector

Rationale of introducing GST Goods & Services Tax [GST] has been positioned to replace the complicated web of central and state taxes and offer a much needed relief to all the players in the eventual analysis. Needless to say, the real estate sector also stands to benefit from the roll out of the GST with the passage of the GST Bill in both the houses of the Parliament after much deliberation, oppositions, bargaining. It may be a very good possibility that the buyer of dwelling units and commercial property will have to shell out less under the umbrage of the new GST regime. At least that is what seems to be the emerging opinion of tax experts and chartered accountants. For latest Indian Real Estate Updates & News, visit sites  in sarjapur In real estate, transactions there are three separate typologies of tax ingredients. The first one relates to cost of land. The second pertains to the cost of materials and commodities that go into the process of construction of properties. The third element concerns the service charges constituting the overall cost of property. Browse plot projects in bangalore for latest Indian Real Estate information. GST in perspective for Real Estate Till date, the State and Central Governments had been levying a plethora of taxes under different categories elements attracting such levies. But whether the migration to the new GST dispensation will bring about the much needed simplification and ease of compliance will be able to bring about a reduction in the overall outgo for the eventual buyer of dwelling units and commercial properties is not yet fully clear. Implication From the above perspective, it is apparent that all the players in the industry stand to unevenly gain under GST, depending on the rationale applied in arriving at the rates of taxation on each ingredient. This is particularly important to analyze as the cost of land and the cost of construction that the buyer is liable to pay at the time of entering into an agreement of purchase, would come within the ambit of GST. Clarity on this aspect can significantly affect the eventual scenario in the real estate sector. For latest Real Estate News, visit villa plots for sale in bangalore