The newly introduced type of service tax called as Goods and Services Tax better known as GST with effective from the month of July for the financial year 2017-18 by Government of India, had a huge impact on various of the main sectors like business ,IT and etc. But, in this article we are briefly going to discuss about Goods and Services Tax(GST ) and its impact on the sector of Indian Real Estate.
a)Prospective property buyers and long term investors.
On 9th Nov 2016, the government of India announced one new act of Demonetization with began with ban of Rs 500 and Rs 1000 Indian currency notes, with the intention of eradication of black money and other problems forming a stage for the introduction of the new Rs 2000 and Rs 500 notes in the market. With this act not only there were many rules revised by Real Estate Regulatory Authority(RERA) for the developers and builders, but also the prices of properties dropped ,because of the new initiative of ‘Affordable Housing’ Program launched by Indian government for the citizens of our nation.
Buyers saw it as good opportunity for booking properties and commercial plots as sign of good investment. But the with the GST taking place, its rate on under construction properties will be 12% of the property value. This will also be expected to have significant impact on long term investors in the real estate market.
b)Developers and Builders.
The developers and builders will get the advantage of price reduction because the ticket price for the property will be lower than the previous rate. It will also, increment their profit margins. Also the reduction in the logistics and transportation costs it will help in minimizing the other expenses.
With this effects taking place in this sector because of GST, our company Mass Realty Solutions who is one of the expert real estate consultants and real estate agents in Mumbai and Navi Mumbai ,can help you whether you are a potential buyer or a developer , by providing you proper advice and skilled assistance in the process of buying and selling properties in Mumbai, Navi Mumbai and Thane.
Also, to know more about new and recent trends in real estate check our blog article(Top three emerging trends to be witnessed in Indian real estate 2017) on our website.