GST will free homebuyers and investors from the hassle of paying several state taxes at different levels
After many reforming initiations like “Housing for All” and RERA (Real Estate Regulatory Act), the next thing that Real Estate along with all other sector is looking forward to is the Goods and Services Tax (GST). GST will free homebuyers and investors from the hassle of paying several state taxes at different levels, therefore removing the double taxation impact. Simply put, GST replaces the multiple taxes levied by the central and state governments and will become subsumed of all the indirect taxes, including Central Excise Duty, Commercial Tax, Octroi Tax/charges, Value-Added Tax (VAT) and Service Tax.
A homebuyer henceforth will have to pay 12% GST to purchase a under-construction house. It is believed by many that the existing multiple indirect taxes on the real estate sector is higher and tax impact under GST would be neutral. Together with RERA, GST will go a long way in ensuring transparency in the realty sector and growing buyer confidence.
GST is also likely to boost foreign investment and benefit the NRI community for investment in real estate because of a seamless all-inclusive channel available. The simplification of taxation is probably the most positive aspect of GST and it will promise well for foreign investments.
An eco-friendly home may be what you always felt is the need of the hour and it’s certainly one as it is for the future generations that we have to protect our planet. This doesn’t necessarily mean you have to spend a fortune on buying a home in sustainable projects. Going green is a mindset and way of life that you can always adapt by making a little shift in your attitudes and habits.
The investments from the Non-Resident Indians (NRIs) have surged in the FY 2021 to $13.3 billion from the earlier estimate of $13.1 billion according to a report published by 360 Realtors. The same report states that the investment volume has climbed upwards by 6.4% compared to the previous financial year despite the pandemic and the buyers’ sentiments plummeting downwards.
Building and owning a home is certainly a dream come true, but the next important question that you need to answer is whether you have taken the measures to protect it. A home insurance protects you from all impending casualties and catastrophes, saving you not only money but giving you financial protection at times of need rendering you safe as well.
