India is a month away from witnessing the implementation of Goods and service tax (GST). It’s not just the retail businesses that’ll be affected by this bold move made by the central government. The real estate sector is set to experience it first-hand as well. Realty shall be blessed with uniformity and standardisation when GST is applied. There will be no hassles of paying a number of different taxes for a single ready-to-move-in property. Instead, one property, one tax will be practiced. GST might also prove to be a big brother against the unethical operations of various shady realty builders. To educate you more about GST, Here are its top 5 benefits for home buyers and real estate builders.
- With VAT and service tax in the scene right now, taxation can go up to 25% of the property’s price. This won’t be the case when GST is applied.
- The current scenario has you pay 4.5% service tax and a state-tailored VAT. According to Arun Dev Builders, GST will replace both of these taxes and remove the annoying ordeal of tracking and paying different taxes. It’ll be easy for the customer, easy for the developer.
- Taxes on building materials and other input costs will be lowered, thanks to GST. It’ll cause a permanent dip in the realty prices. This is good news for the home buyers.
- GST will create a standardised, uniform, and an all-inclusive channel for the Non-resident-Indians (NRIs) to buy properties in India.
- With GST and RERA combining their efforts, real estate is about to get very transparent. Real estate developers will have to register their details to RERA. They’ll have to furnish information such as their company profile, legal cases against them, financial performance, and customer reviews. Experts from Arun Dev Builders reckon it’s really convenient for buyers to decide which real estate developer is good for them.
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