GST bill benefit to Real Estate,

GST Bill profit to Rel Estate Sector

Posted on Posted in Latest property News Gurgaon

GST Bill profit to Rel Estate Sector

Will GST Bill have an impact on the real estate sector?

After a majority of states approve the constitutional amendment, Parliament will need to pass another bill to implement the tax. Finally, a GST council made up of federal and state officials will decide the overall rate, which may vary for different goods.

“While it is still too early to definitively predict the bill’s impact on the real estate sector, we can expect the sector to benefit in the long term on account of rationalisation in tax-related compliance and slated gains in related sectors such as cement, steel, IT and BFSI (banking, financial services and insurance),” said Anita Arjundas, chief executive of Mahindra Lifespace Developers Ltd.

“Under GST, developers would see lesser burden of tax on input items like cement, and steel, as tax credits would be available for set off at various stages. This can lead to lower construction costs for developers across all asset classes, which could likely be passed on to property buyers,” said Anshul Jain, managing director for India at Cushman & Wakefield, a property consultant.

However, the fact that the stamp duty payable on property is not subsumed in the GST could prove to be a dampener for buyers. After a majority of states approve the constitutional amendment, Parliament will need to pass another bill to implement the tax. Finally, a GST council made up of federal and state officials will decide the overall rate, which may vary for different goods.

“While it is still too early to definitively predict the bill’s impact on the real estate sector, we can expect the sector to benefit in the long term on account of rationalisation in tax-related compliance and slated gains in related sectors such as cement, steel, IT and BFSI (banking, financial services and insurance),” said Anita Arjundas, chief executive of Mahindra Lifespace Developers Ltd.

“Under GST, developers would see lesser burden of tax on input items like cement, and steel, as tax credits would be available for set off at various stages. This can lead to lower construction costs for developers across all asset classes, which could likely be passed on to property buyers,” said Anshul Jain, managing director for India at Cushman & Wakefield, a property consultant.

However, the fact that the stamp duty payable on property is not subsumed in the GST could prove to be a dampener for buyers. For all kind of latest property news feel free to contact us.

 

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