Significant Insights into the Impact of GST on the Indian Home Buyers

The Real estate sector is the second largest employing field in the country. It accounts for about five percent of the gross domestic product and hence is considered an integral sector in the economy. The recently approved reform of bringing all taxes under a single Goods and Services Tax (GST) is a much talked about topic these days. The impact that this tax would have on many sectors of the economy is being analyzed. The impact on the real estate sector is no less speculated than that on other sectors. To have a basic idea of how the impact may be, you need to have some insights on a few details.
The Tax You Need To Pay Count Substantially
Making investments in real estate such as buying flats in Mulund involves considerations of tax pays. How much tax you would pay is important as it will add considerably to your total expense. So it will have to be considered while you are making a budget for your purchase. Here are some insights from experts in relevant fields that would make your task easier.
  • A Primarily Dual Impact: For home buyers of properties such as flats in Mulund, shortly, implementation of this tax would probably have dual effects. First of all, it would put an end to the cascading, the double system of taxation. But on the other hand, it will increase the level of service tax to some extent.
  • The difference between the tax rate and the current service tax: The cost of under-construction properties will increase if the tax rate is higher than the service tax rate that is currently valid. Once the rate is found to be lower than this service tax rate, the GST will result in no price change or even a decrease in price for the buyers of flats in Mulund.
  • Free Credit Inputs for Developers Will Benefit Buyers: There is another very significant insight into this matter. The uniformity in tax will call for credit inputs that are free to developers for the goods or services that they purchase. These will lead to reduced costs which would be passed in the form of reduction to the buyers of flats in Mulund.
An In-General Positive Impact
Thus these are some very notable insights into the effect that the GST regime would have on the real estate. In general, the GDP of the entire country would increase by about two percent. This will in all probabilities benefit the real estate sector too. So ultimately, in spite of the slight increase in taxes, the GST will benefit this sector substantially.