The country’s real estate industry was in an unorganized and unregulated state for a long time. But the prime minister’s approach towards reformist policies has brought a progressive change in this sector. Many policies have been introduced out of which, two of them appear to be the most powerful.
The real estate industry has become organized since 1st May 2017 when the RERA (Real Estate Regulation Act) came into action. It facilitates transparent transactions, which in turn makes the investors more confident and at the same time, the customers’ interests are also protected.
GST or (the Goods and Services Tax) is all set to operate from the first day of July, this year. It aims at creating a unified market by using the tools of tax predictability and transparency. This will remove centralized tax barriers and thus, enhance the efficiency of the supply chain.
With the compliance costs and expenses of tax management reducing to a considerable amount, the grip of taxes on the industry has loosened a bit. ITC (Input Tax Credit) is another such provision that is also responsible for the present status.
Several mortgage reforms like CLSS and MCLR have been undertaken by the Central government. Along with this, a strict check on the artificial inflation of price and black money has made things easy for real estate buyers. The commercial segment of the industry has already experienced the change for the better while the residential segment will move into the light soon.
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