Recently, India has witnessed the execution of Goods and Service Tax (GST). The new tax reform seeks to alter India with its “One Nation, One Market, One Tax” based on incorporating all indirect taxes with an uncomplicated tax on goods and services. Whether you are a customer, seller, realty developer, liaison, financier or investor, GST will impact everybody dealing in the realty sector, in several ways. To update you more on GST, here are the major benefits for home buyers and real estate developers.
- Earlier VAT and service tax were applicable, so taxation amounted over 25% of the property’s price. This is not the case after GST has been applied.
- Previously, we had to pay 4.5% service tax and a state-tailored VAT. According to Modi Builders, GST has reinstated these taxes and eradicated the aggravating distress of checking and paying diverse taxes. It has become easy for the customers as well as the developers.
- Taxes on building materials and other input costs have been reduced, because of GST. It’ll lead to a permanent slump in the property prices. It is good news for all the aspiring home buyers.
- GST will establish a uniform and an all-encompassing conduit for the Non-resident-Indians (NRIs) to purchase properties in India.
- Now, as GST and RERA are joining forces, real estate is on the verge of becoming completely transparent. It is mandatory for all builders to register their details to RERA. They’ll have to provide details such as their company profile, legal cases against them (if any), financial performance, and customer reviews. Experts from Modi Builders believe it’s really fitting for buyers to come to a decision that which real estate developer is suitable for them.
It is anticipated that the real estate sector shall undergo consistency and standardization, now that GST has been introduced. Now the people won’t have to pay numerous different taxes for a property. In its place, one property, one tax will be applicable. GST is a bold move towards eliminating the unprincipled operations of some realty developers.