On the 3rd and 8th of August respectively, the Rajya Sabha and also the Lok Sabha unanimously approved a bill to encourage the rollout of GST – Goods and Service Tax, that is known to be one of the biggest tax reforms in India. From the 1st of July 2017, GST Portal Login Online India was effectively levied in the country. This tax replaces multiple taxes levied by the central and state governments sorts 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 evaluating a significant transformation the recent times. The recently implemented (RERA) addressed assurance in the 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 buyers.
Here is why the GST will have a constructive effect on the Industry 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 property prices and eventually be a benefit to the common man.
2. Integrated tax system
It is generally crucial in the real estate industry to build a uniform tax base. The builders and developers currently pay tax even on the purchasing their raw lumber and hardware. GST addresses such issues by making all of the taxes uniform.
3. Revenue Neutral Rate (RNR)
The method of tax operation your past real estate sector does not sync between the VAT and service tax laws. Such problem can be mitigated with the assistance of GST that is needed keep one transaction system – Revenue Neutral Rate (RNR) which is decided by the State Good and Services Tax (SGST) and the Central Goods and service Tax (CGST) areas.
4. Ease Compliances
With assistance of GST, it will easier to take care of an audit trail for better control and monitoring, and completely benefiting the Indian marketplace sector. It will effectively lessen complexity of compliance luring efficiency and smooth payment.
Overall, items and Service Tax (GST) will have a marginal effect on the real estate sector in the days to come. There in order to remarkable improvements in buyer sentiments and alter perceptions that buyers have had against this sector. The Developers too will look for GST regime much much better to work with, with the benefit of input tax credit being a great advantage.