Builders must pass on the GST benefit to homebuyers: Experts – GST Station

The implementation of GST makes the calculation much simpler, since the buyer has to pay only a single Goods and Services Tax. Also, the builder must pass on the benefit of the price reduction he enjoys due to input tax credit to the buyer (a win-win situation!). Impact on Affordable Housing:

To ease the woes for home buyers as well the real estate developers, the GST council is taking into consideration, two proposals that may effectively bring down the GST rate on under-construction properties. One being, implementation of a fixed lowered 12 per cent GST rate with full input tax credit (ITC) to the builder.

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Find detailed information about Impact of GST on real estate in India, property prices, GST benefits, Impact on home buyers, Residential, Rental and Commercial property. Read also the experts opinion.

He says that developers pass on the benefit to avoid action by an anti-profiteering wing of the department in the projects under construction. New GST rates jolt sector! GST from buyers is not a source of revenue, which is clear from the fact that after a project receives completion certificate no GST is levied.

If experts are to be believed, the new taxation policy is bound to have an overall positive impact on all industries, including real estate. However, to be truly able to understand the impact of GST on the real estate sector, it is first important to gain some basic information about this new taxation policy itself. What is GST?

The revolutionary amendment will enable the Centre and State to collect tax through Central GST (CGST) and State GST (SGST). Even though the potential of the impact can only be determined once the final tax rate is out in the new regime, real estate experts believe it to be benefitting the sector.

But, with just about three weeks left for the implementation of GST, tax experts point out that the guidelines have been issued too late for the industry and stakeholders to fully benefit.

Roll out of simple GST returns deferred to Oct; trial to start next month: harpreet singh: Business Standard Line: 12 june, 2019: Builders must pass on the GST benefit to homebuyers: Experts: Harpreet Singh: Moneycontrol.com: 11 June, 2019: Only the interest that you earn from a fixed deposit is taxable in your hands: Parizad Sirwalla: Mint.

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