Quote on pre- GST implementation by Mr. Shaliesh Puranik, MD, Puranik Builders

by Shrutee K/DNS

“With Goods and Service Tax (GST) implementing next month and Real Estate Development and Regulation Act (RERA) already being in action, the Real Estate sector is experiencing enormous change.   Although the tax rate for real estate sector under GST is expected to be 12% it would be too soon to sense the impact of GST on the real estate sector. However, the GST rate is not the only important factor which will affect the real estate sector, the abatement rules as applicable under the service tax regime and the input tax credit facility for developers will also determine if the effective tax incidence on real estate is lower or higher under GST.

But GST would definitely help in bringing down the construction costs due to lower tax on input items like cement and steel coupled with tax credits at various stages of construction will ultimately  benefit both the developers and the buyers. Additionally the evolving market dynamics have compelled the developers to change their approach focusing on customer and delivery. GST will help in venturing India’s goal by empowering more transparency and simplicity of operation in all property deals.”