2 bhk apartments at navi mumbai

Goods & Service Tax

GST: A HOME-BUYER’S GUIDE

Being pegged as a progressive tax change since Independence, the Goods and Services Tax (GST) is probably going to dispose of the mind boggling and questionable tax structure tormenting the nation right now.


Real Estate in India in the current past has seen an incredible development, not simply in the Tier 1 urban areas, but rather even Tier 2 and Tier 3 urban communities and towns. The industry is in the cusp of expanded controls, with bills i.e. RERA. GST is another improvement that will significantly affect this segment.


The real estate sector is evaluated to represent around 5% of India's GDP and is viewed as the second-biggest employer in the nation.


Be that as it may, the segment confronts issues regarding macroeconomic conditions and financial strategy choices. One such challenge is the administration of the numerous roundabout indirect tax levies, for example, VAT, Service Tax, excise, stamp duty and registration fees.


This has brought about various works on being trailed by developers, crosswise over geographies and even inside each State. These issues ought to be put to rest under the GST administration and the practices and positions ought to be regular crosswise over India. Consequently, the taxes paid by home purchasers crosswise over States should pretty much be the same.


Previously, home buyers used to pay service tax and VAT on buy of residential units when booked before their possession. The proposed GST ought to supplant these various expenses with a single tax and ought to likewise guarantee smooth stream of credits through the chain.


Under revised order from the legislature, under-development properties will be burdened at 18% which incorporates 9% SGST in addition to 9% CGST. The legislature has likewise permitted derivation of land value comparable to 33% of the aggregate sum charged by a developer, along these lines, influencing the compelling tax to rate as 12%. Stamp Duty and Registration charges are outside the ambit of GST now in light of the fact that these are state levies while property tax is a municipal levy.


Overall, GST seems to be an beneficial for the real estate sector, essentially in light of the expected free flow of credit, which ought to convert into an expansion in margin in the hands of the developer. Regardless of whether these advantages will permeate into the end clients/clients is to be seen, all the more so since evaluating in this part is more determined by market forces than on costing standards. All the more critically, as the GST administration is relied upon to give more prominent straightforwardness through market system, it is basic that real estate transactions form a fundamental piece of the proposed GST design.

IMPLICATIONS OF THE GST BILL ON REAL ESTATE


Goods and Services Tax (GST)

The impact of GST on the real estate industry will decrease a lot of ambiguity. It has been made clear that under-construction flats would be charged at an effective rate of 12 % on sale value. Wherein Completion Certificate/Occupation Certificate is received, no GST is applicable on the sale of such properties, GST has simplified the taxation process. Instead of paying VAT and service tax, buyers now only need to pay GST, subsuming all other indirect taxes into one.



Important thing you should now about GST for your property:

GST is to bring efficiency into the entire tax system.

THE LEVY of GST is 12 per cent but flat buyers should understand the details of Input Tax Credit (ITC) in GST regime. Buyers should know the construction stage of project as on 30 June,2017, to calculate their ITC benefit

LIKE the earlier service tax regime, renting of residential property has been kept out of the purview of GST. However, the customer will be liable to pay GST in case of rented-out commercial property if the annual rent received exceeds Rs 20 lakh.

THERE WILL not be any change in the stamp duty and registration costs irrespective of whether it is a new property, under construction property or a resale property. These levies continue to be state subjects.
Drop us a message

You're in the right place! Just drop us a message. How can we help?

Or see contact page
   

Millennium hilton new panvel

flats in panvel below 55 lakhs

panvel builders developers list

1 bhk flat in new panvelfor rent

cidco plots for sale in  new panvel

3 bhk flats for panvel

2 bhk resale flats in new panvel

2 bhk flats in new panvel for rent

two bhk in panvel

estate agents in old panvel

2 bhk flats in new panvel for sale

resale flats in  navi mumbai

new pre launch property dealer navi mumbai, maharashtra

2 bhk resale flats in panvel area

1 bhk flat for rent near by orion mall new panvel

new panvel property new projects

2 bhk flats in new panvel near macdonald

2 bhk projects in new panvel

2 bhk resale flats in panvel

new panvel development plan

pre launch projects in panvel

1 bhk resale flat in  new panvel

1 bhk flat in panvel for sale

new construction in panvel near railway station

1 bhk flat on rent in new panvel without brokerage

2bhk millennium projects projects new panvel

1 bhk resale flat in new panvel

property in new panvel near railway station

ready possession flats in panvel

Millennium hilton new panvel

2 bhk flat for sale in panvel

2 bhk flat in new panvel under construction

estate agents in old panvel

2 bhk flats in navi mumbai

2 bhk flat in new  panvel

flats in panvel below 55 lakhs

2 bhk flat in panvel

millennium groups projects in panvel

1 bhk flat on rent in panvel near station

1 bhk resale flats in new panvel

2 bhk resale flats in new panvel

2 bhk flat in new panvel under construction

two bhk in new panvel

new construction in panvel near railway station

2 bhk flat in panvel for sale without brokerage

1 bhk flat in panvel for sale

1 bhk in panvel in 60 lakh

new property in panvel

1 bhk flat in new panvel

new construction in panvel vichumbe

1 bhk flat in panvel near railway station

low budget flats in new panvel

new pre launch projects in panvel

millennium groups project in panvel

new panvel property new projects

2 bhk in new panvel

2 bhk flats in panvel 

2 bhk flats in new panvel near railway station

affordable flats for new panvel

real estate agents in panvel justdial

1 bhk flat in panvel for sale

new panvel property

1 bhk resale flat  at new panvel

2 bhk flats resale at panvel

new panvel resale flats

1 bhk flat in new panvel on rent

2 bhk in new panvel

resale property in new panvel

residential project in panvel

1 bhk flat in panvel sector 35

flat in panvel below 35 lacs

new construction in panvel 

2 bhk projects in new panvel

2 bhk flats in new panvel for rent

millennium groups projects in panvel

2 bhk flat in old panvel

1 bhk flat in panvel for rent

1 bhk flat for rent near by orion mall new panvel

2 bhk flat in new panvel under construction

panvel property 1bhk

low budget flats in navi mumbai 2 bhk flats in navi mumbai 1 bhk flat in panvel near railway station 1 bhk flat for sale in new mumbai new panvel near by D-mart  ready possession flats in panvel row house for sale in panvel new pre launch projects in panvel 2 bhk projects in new panvel 1 bhk flat for sale in new panvel 2 bhk flats in panvel  millennium groups project at panvel 1 bhk flat on rent in new panvel without brokerage row house for sale in panvel railway station 1 bhk in panvel ready possession new construction in panvel vichumbe under construction residential projects in new panvel 1 bhk flat for rent in new panvel flats for sale in new panvel near by orion mall low budget flats in new panvel