Builders must pass on the GST benefit to homebuyers: Experts – GST Station

With GST rollout, real estate sector once again trying to extract money from home buyers With most of the building projects in doldrums builders are once again trying to fleece the buyers by claiming that for all the unpaid dues they will be charged as per GST, which will be higher.

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GST Impact On Real Estate: Will Property Prices Come Down? As the country switches to GST from July 1, the new indirect tax regime will subsume nearly a dozen of central and state taxes, including.

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"GST is supposed to be a tax-neutral proposition, with input tax credit benefits to be passed on to homebuyers. However, lack of clarity on the amount and timelines of passing on this benefit have led to a predictable phenomenon-the quest for ways and means to avoid GST," said Anuj Puri, Chairman of Anarock Property Consultants.

The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/ installments. It is, therefore, advised to all builders/construction companies that in the flats under construction, they should not ask customers to pay a higher tax rate on installments to be received.

1 in 3 Aussies eyes buying a home this year 2 Things You Need to Know to Properly Price Your Home In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price.

Ideally, the 12% GST on under construction projects should be partially offset by the higher taxes paid on inputs by builders and the effective GST on the homebuyers should be much lesser.

Harpreet Singh, Partner, Indirect Tax, KPMG. July 26,2019 Rate this story:.

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Find detailed information about Impact of GST on real estate in India, property prices, GST benefits, Impact on home buyers, Residential, Rental and Commercial property. Read also the experts opinion.

Engage realtors to pass GST benefit to buyers: Finance Ministry to HUPA Revenue Secretary Hasmukh Adhia has written to HUPA secretary and asked him to sensitise all the states as well as the regulator under the Real Estate (Regulation and Development) Act, 2016.

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