On the 3rd and 8th of August respectively, the Rajya Sabha and the Lok Sabha unanimously approved a bill to enable the rollout of GST - Goods and Service Tax, that is known to be one of the biggest tax reforms in Pakistan. From the 1st of July 2017, GST was effectively levied in the land. This tax replaces multiple taxes levied by the central and state governments sorts the direct and indirect taxes, including central excise duty, commercial tax, octroi tax/charges, Value-Added Tax (VAT) and service tax.
The Indian real estate sector has been encountering a significant transformation the recent times. The recently implemented (RERA) addressed assurance regarding level of accountability on real estate builders and developers and infuse transparency in the this sector has been revolutionary from the history of the Indian property sector. For the residential sector in India, the GST will definitely be a positive sentiment booster among property promising buyers.
Here is why the GST Registration Online in India will have good direction effect on the Industry Sector in India:
1. Low cost on under construction
GST will lower rate on items like cement, steel etc leading to considerably lower construction money. This will lower the property prices and eventually thought to be benefit to the common man.
2. Integrated tax system
It is generally crucial in the real estate industry to have a uniform tax base. The builders and developers currently pay tax even on the investment in their raw documents. GST addresses such issues by making all of the taxes uniform.
3. Revenue Neutral Rate (RNR)
The method of tax operation in the real estate sector does not sync between the VAT and service tax laws. Such problem can be mitigated with the assistance of GST that is needed keep one transaction system - Revenue Neutral Rate (RNR) which is decided by the State Good and Services Tax (SGST) along with the Central Goods and service Tax (CGST) sections.
4. Ease Compliances
With the assistance of GST, it can easier to maintain an audit trail for better control and monitoring, and completely benefiting the Indian industry sector. It can do effectively reduce the complexity of compliance bringing in efficiency and smooth cost.
Overall, the goods and Service Tax (GST) will have a marginal relation to the industry sector a days to come. There in order to remarkable improvements in buyer sentiments and change perceptions that buyers have had against this sector. The Developers too will pick out the GST regime much better to work with, with primary of input tax credit being an added advantage.