GST, once implemented, will replace multiple taxes such as VAT/CST, excise duty etc with a single tax, reducing cost for all the players and thus increasing the demand in the real estate sector.
“GST is a long awaited tax reform but its impact on real estate would be felt most on new constructions. This is because, it will seek to merge various taxes on building materials into one thus benefitting builders who would like to pass it on to the buyers. However, it remains to be seen, what would be the rate of this single tax to gauge its real impact on new launches. With improved economic environment, we are hopeful of a positive impact on real estate industry.” – Vivek Aggarwal, Principal Partner, Square Yards
