The real estate sector has emerged as an influential segment in the Indian economy. It accounts for about 5% of the GDP of the country. Recently, the GST has been passed that paved a way for a complete transformation in the real estate industry.
Significance of GST:
It is said that the Goods and Services Tax will drive away from several taxes and extra charges that may affect the growth of real estate sector. The GST is implemented in order to simplify the uncertainty that arises during the taxation process and it has become a unified tax for all goods and services. Thus, the buyers need not worry about the complications that arise during the property registration.
Effects on homebuyers:
However, the exact effect of GST on real estate couldn't be defined properly as it is not very clear. It has also pointed out that the government encourages a cashless economy which leads the buyers to buy properties using institutional finance. Also, the latest version of GST states that renting a residential property should be considered as a service provided. The developers are allowed to pass on the benefits like lowering the costs to the end-users. Hence, this will save the customer a sum of 20%. Because of the existence of GST, the buyers can get a clear view of the price of the property before finalizing it. Buyers can also reach out to the online real estate sites like MyPropertyBoutique, where you can find properties at affordable prices.
To provide affordable housing for buyers:
The government introduces housing for everyone by 2022 by offering affordable housing segment with incentives. On the other hand, the GST exemption provided for affordable housing sectors favours more affordability. This highly turns out to be a benefit to the lower and middle-income groups.