Real estate actors tell a year of GST regime

As the GST regime enters its second year on Sunday, real estate players tell the roller coaster ride that took place. Although many promoters have not yet determined the real impact of the new tax format in the industry, all sections (especially affordable and intermediate services) have benefited from it; those with unrealistic expectations are an exception. Some proponents even claim that the GST introduced transparency in the industry.

Shishir Baijal, President and CEO of Knight Frank India, said, "In the field, the cost-benefit impact varies across markets and product categories. the low- and middle-income housing segment saw their costs decrease due to the benefits of the input tax credit and an 8% lower tax rate, according to Anuj Puri, Chair of the Board. , Anarock Property Consultants: "Although the tax on taxes has been eliminated with the advent of the GST, the overall price of the pockets of buyers seems to have increased by as much. higher taxation on the purchase of a house – an already huge expense for most Indians – has prevented many buyers and investors rket. "

" The GST has been touted as a game changer for all sectors, including real estate. was largely expecting that this would provide a much needed respite for homebuyers by reducing real estate prices. Unfortunately, with the GST completing a year, it turns out that these expectations were unrealistic, "said Puri.

Ashok Mohanani, president of Ekta World and vice president of NAREDCO (West), said said: "The GST has brought a lot of transparency to the real estate sector and has minimized unscrupulous transactions. Although the government's intention was to make it fiscally neutral, with respect to real estate, this was not the case at all. Earlier, when the service tax was levied, 70 percent of the cost of the land was reduced; Under the GST, the land abatement accounts for only one-third of the land value. This is a huge burden for home buyers. "

Farshid Cooper, Managing Director of Spenta Corporation, said," With respect to real estate, there seems to be significant clarity and comfort for buyers. In addition, revising rates from 28% to 18% for several building materials has helped sellers manage their cash flow more efficiently. We are pleased that the government is consciously making changes in the sector. "