{"id":41815,"date":"2017-07-03T23:13:31","date_gmt":"2017-07-03T17:43:31","guid":{"rendered":"https:\/\/cms.navimumbaihouses.com\/?p=41815"},"modified":"2021-06-15T12:10:55","modified_gmt":"2021-06-15T06:40:55","slug":"gst-pros-and-cons-on-real-estate","status":"publish","type":"post","link":"https:\/\/navimumbaihouses.com\/blog\/news\/gst-pros-and-cons-on-real-estate\/","title":{"rendered":"GST – PROS AND CONS ON REAL ESTATE."},"content":{"rendered":"

THE BENEFITS OF GST FOR BUSINESS MAN :<\/h2>\n
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    UNIFORMITY OF TAX RATES AND STRUCTURES<\/h4>\n<\/li>\n<\/ol>\n

    GST will ensure that\u00a0 the indirect tax rates of this structures are common across the over country, thereby increasing certainty and ease of doing business. In this words, GST would make doing of\u00a0 business in the countreis\u00a0 tax neutral, irrespective main choice of place of doing business.<\/p>\n

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    THE BENEFITS OF GST FOR REAL ESTATE DEVELOPER CAN BE SUMMARIZED BELOW:<\/h2>\n

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    1. \n

      UNIFORMITY OF TAX RATES AND STRUCTURES<\/h3>\n<\/li>\n<\/ol>\n

      GST will ensure that indirect tax rates and structures are common across the country,\u00a0navimumbaihouses thereby increasing certainty and ease of doing business. the other word, GST would be make doing business in this country tax neutral, irrespective of the choice of the place of\u00a0 the doing business.<\/p>\n

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      THE BENEFITS OF GST FOR REAL ESTATE DEVELOPER CAN BE SUMMARIZED BELOW:<\/h2>\n

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      Under new tax for regime, the properties developer or the builders in this subject to be central excise duties, vat and entry taxes (levied by state) on construction material cost.\u00a0Different services are under this regime like the labor charges, navimumbaihouses<\/strong><\/a> architect fees, approval charges and legal fees etc. Developers pay service tax of 15%.<\/p>\n

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      img1: Real Estate Navimumbai<\/strong><\/p>\n

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      Real estate developers also struggle with the challenges of multiple-taxation and the cumulative burden eventually gets passed on to the buyer. But the significant change in the tax rate and the lower transportation and logistics costs under \u00a0GST will reduce overall cost.\u00a0navimumbaihouses Now they are free from all other taxes and they can now claim input tax credit and the profits.<\/p>\n

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      \u00a0IMPACT OF GST BILLs ON REAL ESTATE :<\/h2>\n

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        IMPACT ON RESIDENTIAL REAL ESTATE:<\/h4>\n<\/li>\n<\/ol>\n

        If we are look at the topest residential properties sector, sales are not be just impact by tax rates but also by the sentiment, and also on account of the trust deficit which the Real Estate Development\u00a0& Regulation\u00a0 \u00a0Act RERA now seek to be address. That said to if costs do go higher unders GSTs, lowers prevailing currents home loans rates could assuage impact to some extent. navimumbaihouses There is a burden above Buyers and investors as well as developers that the final ticket size of homes will increase even if the Government levies GST at 12%, as\u00a0compared to the existing service tax rates.<\/p>\n

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          IMPACT ON RENTAL HOUSING<\/h4>\n<\/li>\n<\/ol>\n

          Credit of input GST will be available to a developer, if the completion certificate is obtained before the sale is executed. whereas this facility is not available if the developer chooses to rent out any property.\u00a0navimumbaihouses GST is equally applied for rental houses under use as an accommodation. as such tenants are going to face spike in the rental charges of a an accommodation under the GST system since there is no service tax applicable in present scenario.<\/p>\n

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          1. \n

            IMPACT ON AFFORDABLE HOUSING<\/h4>\n<\/li>\n<\/ol>\n

            Although GST is a wide topic to speak about, it is just going to replace multiple taxes under one line. it will definitely affect the people who are in search of property at various levels. here is a short overview on the impact of GST over rental housing.<\/p>\n

            developers charge home buyers with VAT and service tax when they book the house before the project is completed. these taxes are kept transparent in the agreement.\u00a0navimumbaihouses Further they charge the non-creditable taxes like Special Additional Duty (SAD), Countervailing duty (CVD), Central sales tax (CST), Entry tax, Excise duty are all included in the base price which are not kept visible to the customer.<\/p>\n

            Now this GST regime overtakes all the above taxes and keeps everything transparent. hence there will be only one tax common to all home buyers.only thing is that the stamp duty will continue to be imposed irrespective to the projects under construction or ready for possession.<\/p>\n

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              IMPACT ON COMMERCIAL REAL ESTATE<\/h4>\n<\/li>\n<\/ol>\n

              When it comes to GST’s impact on the commercial office real estate market – with the existing service tax for commercial leases at 15%, GST would be likely neutral overall at 12% slight savings, and at 18% slight increase.<\/p>\n

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              BENEFITS OF GST FOR HOMEBUYERS:<\/h2>\n

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              img2: Real Estate Navimumbai<\/strong><\/p>\n

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