A lot of discussions has been going on since the time demonetization and GST (Goods and Service tax) has entered the market. It was a very positive move taken by the Narendra Modi Government but is now facing opposition reactions. But people keep on saying but the main thing that matters is that these steps have proved to be the best phase that real estate sector could have faced. These steps have somewhere opened up the doors for many true users who were in search of the property for a long time. Godrej Properties took a chance of this beneficial time and has come up again with a new property Godrej Sector 106 which is too registered with RERA and is offering worth facilities to catch.
2016 and 2017 have already been a year of revolutions, this holds no doubt. But to come up with something extra, I guess is the taste of current government. They are just modifying the rules to better up to this sector. A few days back a New RERA Certificate was out through which the chances of duplication will be reduced. Buyers and the seller would now have to register with this new technique and should hold the documents to prove their property to be true.
Now to enhance transparency and upgrade original properties in property transactions, the GST Council is expected to bring the real estate sector under the purview of the unified indirect tax regime GST from 1 April. There might be little changes in the budget so that this could be introduced from April 1.
In fact, there is a number of high-end projects coming up in the market where the investment has the double chances to grow. Just like recently a new commercial project 83 Metro street Gurgaon has been launched which I think have turned up the market of what a brilliant commercial property can be.
CBEC (Central Board of Excise and Customs) ex-Member VS Krishnan said that this sector was in need for changes for a long time and by bringing it under the GST as a deemed service may bring the manifold changes. Through this may be the land will not be under service, but whatever right to use the land for residential construction can be treated as a service. The complete procedure will become transparent and the whole thing happening in between will be crystal clear- this means that the process happened after demonetization where the organized players were welcomed; will be further stretched.
He further adding to his statement said that the GST rate imposed on this sector will not be high because real estate is linked to the affordable housing too. There is chance that it can be 12 %; but 12 percent may have a backlog with accumulation of credit because it will not be the only land, but as already conducted the GST paid on cement and steel would be set off, and the GST paid in the earlier process of construction services will be set off and add to that GST paid on land too.
So it can be said that it may be revenue-neutral in the GST side but hope that it clean the mess of the land market which the end users and the genuine buyers are facing. Also, it will boost the foreign investors to appear more in Indian real estate. Even to facilitate NRI's and the foreigners, the top-notch builder is adding special privileges in their projects such as Godrej Nature Plus The Park where NRI special help center will be designed. It is expected that this new step will be under work soon and the councils will then declare as per the discussion.
Long waiting buyers will now be able to add their benefits bags in this sector and earn good benefits out of it. Let's see now how this will be beneficial to this sector and how much transparency and efficiency will be seen.