News Samachar, GST, Real Estate

It is critical and pivotal to understand the various GST rates before buying a property anywhere in India.

The Government, in a bid to reduce tax evasion and make laws easier and remove unnecessary hurdles, came out with the GST in July 2017.

News Samachar, GST, Real Estate

The real estate sector, which was burdened by various indirect taxes such as VAT, Service Tax, excise, stamp duty and registration fees was also brought under its purview to simplify property transactions.

Since its implementation, there has been a lot of confusion regarding rates and benefits.

GST rates on real estate and under-construction properties:

The GST will be levied at the rate of 12 percent with full input tax credit. The real estate sector will comprise of “construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. The value of land is included in the amount charged from the service recipient.” According to the schedule of GST rates for services as approved by the council

These will be charged at the rate of 12 percent with full input tax credit.

All under-construction properties will invite a GST of 12 per cent. GST will not be applicable on ready-to-move-in properties.

GST On Houses Purchased Under CLSS:

The Credit-Linked Subsidy Scheme (CLSS) is meant to provide affordable houses to the lower and weaker sections of the society.

The GST rates on such houses will be effectively 8 per cent and not 12 per cent as one-third will be deduction towards the cost of the land.

How the GST Will Benefit Both Builders And Buyers?

During the construction of a property-house or complex, a builder pays various indirect taxes and duties, these he passes on this cost to the buyers and end users.

With the roll out of the GST, all taxes have been combined into one which has lowered the cost of property.

The price cut is expected to benefit the sector and help in its revival and boost home sales

The GST of 12 percent which is on the higher side will finally benefit the buyers as this will bring clarity and uniformity in taxation, which buyers will surely appreciate

The GST is proposed to be a Win-Win situation for builders, buyer and the government. It is expected to streamline taxation which will lead to efficiency and less tax evasion, especially as the real estate has a strong component of black money involved in it.

SHARE
Previous articleOne Life to Live
Next articleRaid-A Good Movie-Content
Riya Sharma is the head of the Editorial Department, Covers all types of stories, 10+ Years of experience in Journalism.

LEAVE A REPLY

Please enter your comment!
Please enter your name here