After RERA now it’s GST keeps people on queue who are willing to buy flats in Kolkata. As per the market speculation there’s a contradictory frame of references ongoing regarding the post GST price correction. Goods and service tax (GST) will be levied on the available commodities from July 1. During this transition period of proposed GST regime people have to keep a little more patience in order to observe the change of market, especially the impact on property price for their investment purpose.
According to a leading property portal in Kolkata realtors and industry experts are still finding it confusion to come to a singular standpoint related to GST impact on indirect taxability, though GST has kept under construction realty development at 12% tax slab and basic building materials such as cement and steel at a 28% taxation rate.
The Confederation of Real Estate Development Association of India (Credai), the apex body of private realty developers suggested that project price is likely to go up due to multiple, individual, indirect taxability like-GST on land, raw materials and stamp duties. Apprehending the high price CREDAI has appealed to the state governments to waive their respective stamp duties.
In press release CREDAI declared that for real estate sector 12% tax slab is just a portion of its GST tax burden. GST regime doesn’t leave out multiple taxation from this sector. Again stamp duty will act as an excess burden on the end-users by 5%-8% on an average. It’s also predicted by NAREDCO that in the affordable housing sector, GST rate could be elevated by 1.5% to 5% compared to the existing rates.
On the contrary, a group of industry experts opine that the input of tax credit that builders get for raw materials and other products for the development process could be passed on the buyer by paring down the cost of residential properties being sold.
In an interview with our correspondent West Bengal RERA and realty expert Mr. Mahesh Somani said, “GST is a revolutionary tax reform in the country till this time. Construction sector might be benefited due to the input tax credit under GST regime, as GST would expectedly result in an overall neutral taxability for the construction sector. The credit available for input taxes paid can out-weigh the higher GST rates.”
- Somani Realtors News Network