India 05 August 2016: How GST will impact real estate, Response quote share by Mr. Vivek Agarwal, Managing Director, Leverage Group
The passage of Goods and Services Tax (GST) Bill is the biggest indirect taxation reform in the country. This law will single-handedly solve many of the challenges faced by the real estate sector. Heavy taxes that are being paid currently by the developers will automatically go down by a considerable percentage. Construction costs would be reduced to some extent and this benefit can be passed on to the customers, thereby spurring home buying. Apart from the significant reduction in tax management expenses due to a single unified tax, the compliance costs will go down too.