What is the Impact of GST on Real Estate Sector

How will GST Impact Real Estate? GST, which is one of the longest awaited tax reforms and has got unanimous permission from both houses of parliament. We know that real estate sector provides about 7.8% to India’s GDP and real estate is the second largest employment generator. The enactment of this tax law will alone explain the challenges faced by the real estate industry and support the sector to come out of its long rest.

GST Impact Real Estate The impact of GST on real estate in terms of outflow for developer & consumer will depend on the last rate of GST.  Major thing is to know what will be the final rate of GST because if the rate is larger than the current rate, then it will raise the final value of purchasing the home. 

Impact of GST Bill on Real Estate

GST Impact Real Estate​ GST will decrease the value of purchasing houses for buyers as they have to pay Service Tax and VAT on purchase of residential unit when booked previous to their completion, developers have to give excise duty, custom duty, CST, Entry tax which is non-creditable tax cost, on their professional side, which is covered in the cost of units. 

The GST regime is intended to replace all multiplication of taxes and the builders will have to pay a larger amount in the 4-tier taxation but would take input credits eventually.   The GST will be applied to the materials that is required by the builders for completing the residential projects. So, it will immediately affect the overall cost of building construction.      

conclusion The impact of GST on real estate sector is very much likely to be in the hands of buyers as the rate of tax can certainly delight with its economical zone. However, no pre-assumption can be made in the scenario as the real estate sector is a highly volatile industry and can fluctuate with high frequency.       know More Information @       http://blog.saginfotech.com/gst-impact-real-estate-india