After the GST implementation the prices will fall and the real estate will become some what cheaper as there will be no multiple taxing that is what people said. But there is some confusion if it for the projects coming up after July 1 or the existing projects.
Is it a good time to buy a house? This is the perennial question on the minds of home buyers. But this question assumes significance as India moves to a new indirect tax regime, the Goods and Services Tax (GST) from July 1.
Experts say that buyers will benefit if they buy houses in projects launched post July 1. Though a 4.5% service tax is being replaced by a 12% GST, the advantage is a number of hidden and cascading taxes will be removed under the new regime.
Developers will also get several tax credits under GST, leading experts to conclude that new projects launched July 1, are likely to cost pinch buyers less.
VAT and sales tax are not reflected on the invoice in most states, when a consumer buys a house, but are added to the cost.
“The heavily taxed real estate sector welcomes a single stable 12% GST rate, inclusive of the value of land and with full input tax credits,” said Rajeev Talwar, CEO, DLF and chairman of NAREDCO.
But these tax credits will not be available for projects that are under-construction and nearing completion, also ready flats.
