Introducing Real Estate GST To The Home Buyers
Goods and Services Tax (GST )is the biggest tax reform of India which is applied to the major sectors of the economy. Real estate is one of the sector hit as well as benefited under this reform. 6 – 8% of India’s Gross Domestic Product (GDP) is contributed by the real estate sector. Goods and Services Tax bill was approved in Lok Sabha on March 29, 2017, and after the imposition of the bill, there were many changes in the financial sector of the economy and same on the real estate sector. GST is the union of 16 major taxes and levies into a single consolidated tax.
GST Impact on Real Estate Sector
The 4 tired tax structure put forth by GST council with various slabs are 5%, 12%, 18% and 28%. Residential constructions attract 12% of tax and is applicable to the developers selling residential properties / abodes before completion of construction. The luxury housing property is entitled up to 12% of GST. If the Occupancy Certificate (OC) for the project has been received, then, no GST will be applicable on the project. GST rates has been levied on the renting the home. The affordable housing property are exempted from the GST. Cement, sand, steel also invites GST and hence the prices along with GST on the property also rises.
GST is expected to add still 2% more to the GDP and help in the country’s progress.
Why the developers like Brigade are for the GST Bill
As GST proposes to roll multiple taxes into one, the cost of construction will come down and the builders are profited. GST will bring in more liquidity funds into the market and hence boost the sales of the home. GST will impart more transparency to the sector and provides an audit trail for better control and monitoring of the sector.
For the construction of civil structures and complex buildings or the housing projects which are intended for the sale for buyers is subjected to 12% tax. Similarly while building of complex buildings, civil and residential buildings the material required comes under the GST applicable list. Construction of massive projects requires a bulk amount of material, then it is obvious to say that the builder will look out for their profit and it will be added in the price of the sale value of the project. It’s quite clear to say that GST will have an impact on home buyers.
It is advised to the buyers to be aware when the builder asks you to pay just 1% or a very nominal payment and the balance after possession, you are entitled to pay the GST on the full amount. Which are little more expenses from your hands where you need to be extra careful. Builders like Brigade make sure your investments are in safe hands and hence the property. Brigade Parkside East from Brigade Groups is one of the outstanding project undertaken by brigade developers that offer a transparent project development.
Brigade Parkside East offering GST benefit to the Home Buyers
The GST rate has been reduced to 8% from the existing 12% when you are purchasing Brigade Parkside East under the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojna. So, it is likely that Brigade Parkside East prices will be affordable without getting the quality compromised.
Brigade Parkside East is precisely located in Sarjapur Road surrounded by the surrounded a great connectvity of road networks for an excellent livelihood. The project comprises 1 BHK and 2 BHK apartments and has 237 units in the entire project with various configurations.
Buy your dream home today in Brigade Parkside East and avail the GST benefits.
To avail offers call us @ 91 8123982020 or log on to http://brigadeparksideeast.grihhpravesh.com/
Only 282 units will be avail able so hurry up!!!! Book now and avail offers for lifetime possession.
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