What is the Impact of GST on Real Estate Sector

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What is the Impact of GST on Real Estate Sector
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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 Indias 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.

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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. 

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Impact of GST Bill on Real Estate 
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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. 

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• 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.
•      

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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 _at_
•       http//blog.saginfotech.com/gst-impact-real-
  estate-india

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