Thursday, January 17, 2019
Finance
   /   /  Post Comments
 

How Can You Benefit From GST as a Homebuyer?

 
  By : , New Delhi, India       10.1.2019         Phone:9716171569          Mail Now
 

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 developerís 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!




TAGS: GST benefits for homebuyer,   GST benefits for the real estate agents and developers,  




DISCLAIMER: The views and opinions expressed in this article are those of the authors /contributors and do not necessarily reflect the official policy/opinion of webindia123.com / Suni systems Pvt. Ltd. Webindia123.com / Suni systems Pvt. Ltd and its staff, affiliates accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of the material published in the site. In case of any queries,or complaints about the authenticity of the articles posted by contributors, please contact us via email.