The GST (Goods and Services Tax) reform has many positive impact on India’s real estate sector, particularly in terms of buyer sentiment and the public perception of the industry. One of the biggest tax reforms since India’s independence, GST, which follows a One Nation, One Tax principle and philosophy, effectively cuts through many taxation complexities that have been making legal compliance a pain in the country.
GST replaces multiple taxes that were levied by the government (both central and state), as it subsumes al indirect taxes, ranging from central excise duties to commercial taxes, value-added tax, service tax, and octroi tax charges. In the simplest terms, GST will help buying villas in Coimbatore and similar kinds of real estate properties a lot easier in light of tax obligations.
GST eases compliances, while also helping eliminate the old cascading tax structure by creating a uniform tax structure with uniform tax rates and reducing additional tax obligations and burdens on consumers, such as those planning to purchase villas in Coimbatore.
In addition to RERA (Real Estate Regulation Act), which addresses issues of non-transparency in the real estate sector, and affixes a higher level of accountability on real estate brokers and builders, GST, adds an even higher level of sentiment booster among consumers and property buyers. Over its implementation, GST has already been largely instrumental in bringing down residential real estate prices, including price tags on villas in Coimbatore and other gated communities, making them more accessible to consumers.
GST not only brings greater tax transparency on purchase prices of real estate. It also offers great benefits to all stakeholders in the real estate sector, as it brings a more positive perception of the sector, which means greater interest and trust, which results in a greater willingness to invest in real estate properties by consumers.