Do you know what is the impact of GST Bill on the Real Estate Industry?
We all know that the principle of the GST is “One Nation, One Tax”. It is the principle so it indicates that the real estate sector won’t be left out of this tax transformation. We all know that in the Indian economy the real estate sector is considered as one of the most and important pivotal sectors. After agriculture real estate is known as the largest employer in the economy. It contributes an average of 5-6 percent to the Indian GDP. Below mentioned are the new GST rates on the residential real estate transactions that have been proposed as follows: • On the residential properties that are not part of the affordable housing segment the GST to be charged at 5% without Input Tax Credit (ITC). • On the residential properties that are included in the affordable housing segment the GST to be charged at 1% without Input Tax Credit (ITC). So GST applicable rate on the real estate that is under construction properties is 12%. Therefore GST does not apply to the sale of