The GST implementation has recently been in action and ever since that, there have been various changes in the tax levels and we are here to find out what effect has GST had on the real estate market. Well, to begin with, housing purchase and home loans and several other areas have been affected by the recent change and this certainly put a little shade on the final price for a home if someone’s seeking it.
The Goals Of GST
The Goods and Service Tax is said to replace the other tax forms such as excise, VAT, and service tax and the intention of the whole program is to make a uniform market for the consumers.
Gone are the days when consumers had to pay a whole lot of taxes in different cities. What GST does is create a way to save the labour and money of people by providing them the means to pay only one type of tax. There has been a lot of benefits due to that. Firstly, people save a lot of money and also this particular method also made way for a cleared tax environment for the consumers.
Now the question arises that how is GST going to affect the whole housing situation and will be of any benefit to the home seekers and buyers. Well, to answer that question, GST certainly increased the incidence of the tax from 5.5% to 12% but then there are other factors that determine whether GST will impact on particular housing project or not. For if the construction project is in an advanced stage, that could mean that the substantial cost has already been decided and GST won’t have any effect on it. However, for the new and upcoming projects, surely there has been some relaxation due to the implementation of GST which is indeed a good thing for the home buyers.