GST stands for the Goods and the Service Tax and this is the most innovative tax related reform system which is prevalent in India for several years. With the introduction of GST there has been an elimination of the conflicting and the cascading taxation method and this has really confounded innumerable industries in the past few decades. However, GST is known to have profound effect on the economic scenario of India. There is the single indirect tax and this helps in covering all the goods and the services and in the coming years there will be an increase in the tax collection and this will make things easy for the group of retailers and the other business organizations.
GST is also making things easy for the home buyers. The buyers can remain free from the existing tax liabilities and things are sure to remain largely unaffected with the introduction of GST in the specific genre. In fact, attempts have been made by the GST Council to bring the real estate sector under the protection of the GST ambit and this is made possible through working contracts. In this case, 12 per cent will be perfectly taxed under the GST establishment. In the present scenario the home buyers has to pay some of the vital taxes and these are the indirect taxes like excise duty, service tax, value added tax and the rest.
In the recent past the Indian real estate industry has witnessed a phenomenal growth and development. This has happened in all the Tier 1, Tier 2 and the Tier 3 cities and towns. The industry has always been in the cusp of the regulation along with the bills like the Real Estate Bill and this has remain pending for the reason of approval mainly in the side lines. In fact, GST is noted to be the next developmental factor that is sure to have vital impact in the specific sector. It is customary for the construction services to remain taxable under the VAT and this is the sort of service tax you have to pay for years. Once properties are brought within the regime of GST the tax factor has become better manageable.