Through the abolition of multiple taxation systems, GST will make the system more transparent by making it streamlined. The economy will receive a positive impact and so will the real estate industry, as expected. Only one nodal agency will function rather than a multiple of them, thereby making the process methodical that will result in attracting greater FDI.
Multiple taxes lead to the confusion arising from the payment of different taxes at different stages of time. But with only one consolidated tax levied, such a problem won’t occur and things will get crystal clear. Now coming to the real estate industry, this too will be monitored in an efficient manner through a transparent audit track.
The multiple taxation system has its own side-effects that might cause inflation in prices for us. GST being a unified taxation system will bring this to an end. Now see how it works and why it is better than the previous taxation system.
As you all know that previously, VAT, excise duty and service tax were the three most important taxes. GST being a consolidated tax has now replaced all three of them. Input credit was not available earlier. With the introduction of GST, both the developer and the contractor will get access to Input credit.
Be it a packet of salt or a house, the buyer was unable to know the actual price charged to him or her since it was a figure merged with all taxes. But GST will now offer you a transparent division of the total figure into the real cost and cost charged by it.
Economic procedures will become uniform in all parts of the country with the effect of GST. This will also simplify the existing tax structure, which is complex at present and calls for different procedures in different states. With so many changes that are going to occur for the better, the real estate sector is assumed get influenced by these.
Hope this news has put all you real estate buyers out there, in a good mood! For further information, do log onto www.transventor.com