| |
GST or Goods and Services Tax has successfully removed a list of unnecessary
indirect taxes from the Indian economy, and the real estate industry is no
different. This sector, one of the primary GDP contributors, accounts for 6-8%
to the overall economic growth of the country. Given this fact, GST has not only
fuelled the growth further by giving way to a uniform taxation system, but
benefits the industry in a multitude of ways. Here they are.
GST benefits for homebuyers
Thanks to GST, you now have to pay a single 12% tax on under-construction
property purchases. This brings a relief to homebuyers like you as previously
you were expected to pay VAT, service tax, registration charges and stamp duty
separately on under construction property purchases. Moreover, VAT, registration
charges and stamp duty differed across states being state levies, adding more
confusion. Now, with GST at your service, you can enjoy the uniformity of
taxation and also do not have to pay GST on ready-to-move-in purchases. However,
irrespective of GST, you will still have to pay registration charges and stamp
duty on your property purchase. Additionally, if you are aiming to purchase a
house from within the affordable housing sector under PMAY then you do not have
to pay any GST.
GST benefits for the real estate agents and developers
In the pre-GST regime, developers had to pay excise duty VAT, customs duty,
entry and input/service tax on various services. This included the labour
charges, legal charges, approval charges, and much more. All these charges added
up to account for a big amount, the burden of which was passed over to the
buyer. However, with GST all the developer’s construction charges have been
dissolved into one uniform charge. Moreover, once the Input Credit Tax is
calculated the benefit of the reduced charges is then passed over the homebuyer.
Even though the process of calculation can be lengthy and the paperwork is a
little more as compared to earlier, the result is that the total cost has
reduced.
GST benefits on the industry as a whole
The GST council is likely to decrease the GST rates further, thereby bringing
the under-construction properties under the 5% GST slab this January. This will
of course take you closer to your dream home. However, given the present GST
scenario, the industry as a whole is set to benefit from uniform taxation. For
instance, steel, paint, cement, etc., are being taxed at 18% GST at present.
This is significantly lower than earlier. So, this is likely to bring down the
cost of construction materials, which in turn will reduce the cost of
construction and make properties viable and affordable for the entire real
estate value chain.
So, if you are interested in properties like
Aaradhya High Park
, Lodha Palava City Dombivali or any other, you can utilise
the best of reduced real estate rates owing to GST and invest in a property of
your choice with ease. In order to add more flexibility to the process, apply
for a Home Loan of up to Rs. 3.5 crore from Bajaj Housing Finance Limited. Use
this hefty loan to fund your purchase and also get in-person assistance for site
visits and documentation assistance on your home purchase. To get started with
ease, use deal customised for you by entering your name and number to check your
pre-approved offer. This will help you secure a loan in just a few clicks,
saving you both time and money!
|
WHATSAPP
2900