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GST Impact on Real Estate

Last updated: November 21 2020
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  • GST Impact on Real Estate

    Hello Friends,

    GST Debate is on in LS. Wanted to know the impact of GST on real estate. GST will be applicable from 1st July 17.
    1. There would be only one tax meaning VAT & Service Tax, SD- will go away?
    2. The Double taxation for builder wont be there like sales tax, custom tax etc? Will this bring property prices down?
    3. Will GST be applicable to already purchased but under construction properties as well or only all new properties (RTM or under construction) purchased post 1st July is unclear?
    4. I had visited few sites in Tathwade/Wakad & they are saying that GST might shoot taxes to 18%?
    5. If we see recent decisions by Government the taxes might be lower for affordable houses that are pricing less that 40-50 lac? Meaning Luxury flats have to pay more taxes?

    Please share your views, would it be wise to hold flat booking till GST gets rolled out?

    Regards
    Last edited March 14 2019, 07:55 PM.
  • #2

    #2

    Re : GST Impact on Real Estate

    Gst may increase flat cost by 3 to 5% and if raw material costs is reduced that may go to builders pocket

    Comment


    • Maccsachin
      Maccsachin commented
      Editing a comment
      Seems logical as Builder may not transfer this to buyers!!
  • #3

    #3

    Re : GST Impact on Real Estate

    Ache din for home buyers, current service tax rate is 4.5%, which will now be replaced by GST of 12% (+/-)

    Comment

    • #4

      #4

      Re : GST Impact on Real Estate

      Rental income will also attract GST making investment in RE further less enticing.

      Comment

      • #5

        #5

        Re : GST Impact on Real Estate

        Double ache din ! yeh toh sone par suhaga ho gaya. Now, I understood why traffic on our site is decreasing.

        Comment

        • #6

          #6

          Re : GST Impact on Real Estate

          Just notice in local news online that real estate sales is kept outside gst

          Comment

          • #7

            #7

            Re : GST Impact on Real Estate

            Originally posted by jayesh24 View Post
            Just notice in local news online that real estate sales is kept outside gst
            Is it?

            Comment

            • #8

              #8

              Re : GST Impact on Real Estate

              Yes its confirmed. I heard on CNBC that for first year real estate will be kept out of GST.

              Comment

              • #9

                #9

                Re : GST Impact on Real Estate

                Originally posted by Maccsachin View Post
                Yes its confirmed. I heard on CNBC that for first year real estate will be kept out of GST.
                Sounds good. Can you share the link or did you hear it on the news channel?
                Talk TRUE; Talk IREF

                Comment

                • #10

                  #10

                  Re : GST Impact on Real Estate

                  Hold on your excitement. Real estate is kept out of GST doesn't mean that there won't be any tax. It means that the current tax structure (stamp duty, VAT etc) will CONTINUE for one more year, until it is included in GST.

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