Real estate sector is one of the sectors in India that forms the crux for generating employment next to agriculture. Though there had been discrepancies in the sector due to lack of transparency and unscrupulous transactions, but the implementation of GST would rule out these problems. Supply chain system will be revamped as the gaps in the existing ones will be filled enabling it to enjoy more benefits in SEZ (Special economic zone).
Real estate developers, who are planning to start new residential projects in Hyderabad, have to abide to the GST from present tax system. The sale of land and buildings has been excluded from this purview, but the rates levied on cement, brick and iron will enormously benefit it. Under GST, cement will be taxed at 28% and bricks will be taxed at 25-26% including central and state taxes.
Moreover, the streamlining of taxes with GST will reduce the logistics transportation cost of bricks, cement and iron. Earlier, the huge expenditure incurred on each residential project went indiscernible and unrecorded on book. The new laws will drastically reduce the percentage of expenditure due to cloud storing of invoicing. Small-scale industries would benefit the real estate sector with this move. The accountability and transparency in the transactions will ameliorate creating equilibrium between developers and consumers. This new move by Government would be game changer for the industry for the foreseeable future.
The buyer can update himself with more information and plan accordingly to buy the best home in Hyderabad under the aegis of real estate professionals, www.propertyadviser.in.
By: Pavan N