Imposing GST Real-Estate Sector
Real estate is one of the major segment of the economy that contributes 6 – 8% of India’s Gross Domestic Product (GDP). Real estate also contributes a huge share in generating the employment to cater the job needs. Taxes like Service tax and VAT already is applicable to the real-estate sector along with the recently added GST (Goods and Services Tax).
After the GST (Goods and Services tax) imposition, there have been many changes that we have seen, and form all of that GST has also played a major impact on real estate and people who are willing to buy new homes.
GST Bill was approved in Lok Sabha on March 29, 2017, and after the imposition of the bill, there were many changes in the financial sector of the economy and same on the real estate sector. GST on buying the home like Prestige Willow tree is a standalone residential property of Banglore with clear legal documents will both have advantages and somehow it will be beneficial for the financial sector. For the construction of civil structures and complex buildings or the housing projects which are intended for the sale for buyers is subjected to 12% tax.
Similarly while building of complex buildings, civil and residential buildings the material required comes under the GST applicable list, and construction of big housing projects requires a bulk amount of material, then it is obvious to say that the builder will look out for their profit and it will be added in the price of the sale value of the homes and buildings. GST is the tax on tax, so it will add more cost on paying the tax. It’s quite obvious to say that GST will have an impact on home buyers but how here you will get the solution.
GST Impact On Real Estate
GST council has put forth 4 tired tax structure of 5, 12, 18 and 28%. The recently implemented Goods & Services Tax applicable in the residential real estate transaction gained mixed reactions from the people. Residential construction services attract 12% of tax and are applicable to the developers selling residential projects/abodes before completion of construction to the buyers. Cement, sand, steel also invites GST and hence the prices along with GST on the property also rises. The luxury housing property is entitled up to 12% of GST. If the Occupancy Certificate (OC) for the project has been received, then, no GST will be applicable to the project. GST rates have been levied on the renting the home. The affordable housing projects are exempted from the GST.
It is advised to the buyers to be aware when the builder asks you to pay just 1% or a very nominal payment and the balance after possession, you are entitled to pay the GST on the full amount which is a little more expenses from your hands where you need to be extra careful?
New Project Prestige Willow Tree is one of the affordable premier projects entering the pre-launch phase in Vidyaranyapura Bangalore. It is the ideal residential property with all the necessary amenities to fulfil your dream home desire.
Prestige Willow Tree a Bundle of Jo
Prestige willow tree features contemporary style 1 Bhk, 2 Bhk and 3 Bhk apartments for the luxurious lifestyle with all amenities for well-being. Prestige Willow Tree Vidyaranapura Main Road is in the vicinity of hospitals, schools, colleges, shopping courts and entertainment zones for your needs and necessities. Prestige Willow Tree is surrounded by greenery and landscaped gardens for the great look and pleasure of living. It includes a state-of-art world-class clubhouse of 25000 sq.ft with varied facilities along with a fully equipped gymnasium, a great library, lush green gardens, a meditation zone and giant swimming pool and many more. It features the basketball court, tennis court and golf course too in the premises for the best of modern living.
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