Benefits of GST for Real Estate
Is GST beneficial to works contractor and builders?
GST aims to replace all indirect taxes levied on goods and services by the Central and State governments. It merges various taxes on building materials into one, leading to lower compliance costs and input costs for builders and reducing harassment that is there due to multiple taxes today.
The impact of GST on real estate sector is considered to be largely beneficial, as all material such as cement, steel, sand, flooring materials, electrical and plumbing fittings and fixtures are expected to be cheaper by 5-10% depending on the GST rate.
In the new regime, the builder will pay GST on purchase of construction materials, and GST on services used for construction. But in the present taxation regime, they have stamp duty and non-creditable taxes like VAT, excise duty, etc., which was considered to be one of the major causes which bring tax inefficiency. Due to the DST, current multiple taxes on the procurement side would get replaced by a single tax. This means, apart from reduced costs: easier to understand, simpler and comparatively straightforward tax regime.
In conclusion, the GST, along with the Real Estate Regulatory Act, could be good news for all stakeholders in the real estate sector.
 Is GST Good for Real Estate?, ET Realty, Available at http://realty.economictimes.indiatimes.com/news/industry/is-gst-good-for-real-estate/53524681
 Building on a strong GST foundation, R P Deshpande, The Hindu. Available at http://www.thehindu.com/features/homes-and-gardens/building-on-a-strong-gstfoundation/article8979814.ece
 Real estate – Will GST provide much needed relief?, Malini Mallikarjun, Available at http://www.moneycontrol.com/news/tax/real-estate-will-gst-provide-much-needed-relief_1597321.html
 Building on a strong GST foundation, R P Deshpande. Available at http://www.thehindu.com/features/homes-and-gardens/building-on-a-strong-gstfoundation/article8979814.ece
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