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 the completed properties as we can say that where the completion certificate has been issued or in the process to the resale of the old properties. So you can also get Partnership Firm Registration. The process of GST on real estate has played an important role in clarifying the criteria of taxation of Real Estate in India.  The range of it can be 5% to 18% depending upon some key factors.

What is the impact of the GST Bill on real estate buyers & investors?

Goods and Services Tax that applies to general purchase prices. Therefore all properties that are come under the development will be charged at the 12 percent for the property estimation. It prohibits stamp obligation and enrollment charges. And for the completed properties then the prior arrangements will proceed. As well as purchasers will pay no indirect tax for the sale of move-in properties.

For More Information :- Limited Liability Partnership Registration