The Goods and Services Tax (GST) bill was cleared by the Rajya Sabha on August 3, Wednesday, after much discussion on the issue. It is touted as India’s biggest tax reform and is driven by the principle of ‘one nation, one tax’, economically unifying the country. Though the actual rates of GST have not yet been announced, real estate market players are optimistic about its impact on the real estate industry.
Real estate is the second largest employment generator in the country after the Information Technology sector. It contributes to 7.8% of India’s GDP. The GST bill will directly impact realty sector majorly in terms of the tax outflow dynamics for builders as well as homebuyers. The industry will gain via the slated improvements in ancillary industries like cement, home loan providers, IT sector, steel industry, etc. A more rationalised taxation will have long-term positive impact on the property market. [Read more…]