The long-pending Goods and Services Tax Bill or GST is finally implemented. This bill has been the most talked about and controversial from the day of its announcement.
Almost after a decade, the curtain has raised. GST bill is the amendment in the array of indirect taxation. Once the proposal is implemented, then the indirect taxes levied on production, consumption, and selling of goods and services will be calculated on a national level.
Earlier, the taxes were imposed by the central and state government at different stages. GST Bill implementation will prove out to be a crucial step in the transformation of indirect taxation.
Basically, after the implementation, many indirect taxes which price on state and the central level will now be merged into single taxation unit.
GST bill is going to simplify the equation of indirect taxes. Real estate sector will be the primary beneficiary in the whole scenario. There are many taxes which are imposed by the central and state government at different stages of property and land transactions.
Real estate sector has to pay taxes in the form of the VAT or value-added tax. They are classified as the value of goods, value of services and value of land.
State government levy taxes on the value of goods, whereas, the charge on the value of services used is taken care of by the central government. This system leads to a lot of confusion and duplication of taxes.
GST bill will merge all these three different taxes into single tax unit. Moreover, it will lead to secure enforcement and administration of taxes. GST bill will bring a lot of transparency in the present indirect taxation scenario.
Apart from the real estate sector, consumers will also be at the receiving end. Bill implementation will reduce the tax burden, and property rates will come on the lower side.
However, the primary deciding factor is the rate of taxes. If the rate of tax is higher than the cumulative charges in force, then the overall cost will increase. Though Government is keeping in mind the welfare of every community involved, experts believe that GST bill is going to give a bounce in real estate sector.