Will real estate prices shoot up after GST?
The current complex tax regime in the country with a myriad of compliance obligations and tax cascading is soon going to be a history as the new unified tax regime, Goods and Services Tax (GST) is likely to be rolled out from July 1, 2017. The Real Estate sector will get a big relief from the existing multiple taxes.
The burning question for the industry leaders in the sector is, will Real Estate prices will shoot up? RERA and GST are fuelling the already existing uncertainty in the market. The Real Estate (Regulation and Development) Act, 2016 seeks to protect home-buyers as well as help boost investments in the real estate industry.
According to some market experts, property rates would not go up due to GST. Service tax charged under GST for real estate sector would go up from 4.5% to 12%. However, this would be offset by ‘Input Tax Credit’ under the GST, which would help keep the final selling prices neutral.