Real estate developers and constructors in India have accepted the implementation of Goods and Services Tax (GST). They say that GST will improve the broken tax system and help create an integrated market. The Indian Government had already made it clear that leasing of land and renting and EMIs paid for buying of under construction houses and any kind of property in Mumbai, Delhi or any other part of country will be under the ambit of GST. Though the sale of land and buildings will not be included under GST but these kinds of transactions will attract stamp duty.
Mr. Ravish Kapoor, Director, Elan Group said that “GST exists for the growth of real estate sectors. GST will make business more smooth and transparent and more investments will flow into the sector”.
M3M Group also said that the real estate sector account for about 5% of the whole country’s GDP and is said to be the second largest employer. The Fiscal Policy makes a challenge indeed for the real estate developer. One such bottleneck is to multiply tax discounts such as VAT, service tax, excise duties, registration fees etc. GST is expected to add to about 2 percent of India’s GDP with economic growth and the demand for real estate getting a boost. But there are some issues, which have already been highlighted by various companies and GST council should take a note.
Omaxe Ltd, CEO, Mr. Mohit Goel says that Lok Sabha has passed 4 bills related to GST and the roads should be cleared for its implementation in July. It is a single most important indirect tax system to be implemented by the country till date. The tax system of the country will be simpler after the implementation of GST and bring about a boost in the economy of the nation. He also added that their firm is hopeful that its positive effect on the overall economy will also help the growth of real estate sector in the longer run. The Pune Property owners will also benefit from it.
The implementation of the GST is effective from July 2017.
Under the present tax regime different states impose separate discounts as goods move across the country. Truck drivers spent more idle time at the interstate borders in filling forms and awaiting inspections. Small and medium sized companies want to grow and become national companies, but they have to deal with this administrative burden. Thus GST will improve the present stagnant conditions of the sector in the country.
0 comments:
Post a Comment