How is implementation of GST a tax reform?
Implementation of goods and services tax is the most audacious reform that India has seen after liberalization. It is a huge leap towards organizing businesses. It will not only enhance the revenue of government but will also create a level playing field for all businesses. It’s not just government and entrepreneurs that stand to benefit, the biggest beneficiary of this tax regime is the consumer.
How will GST impact the real estate market?
One key sector that is very close to the heart of every Indian is the real estate sector. We all Indians dream to own a house, that’s our priority ever since we start earning and this new tax regime of GST may bring a lot of relief to the real estate sector. The entire supply chain of real estate sector would be revamped after implementation of GST. It would bring a lot of transparency in the housing sector and minimize unscrupulous transactions.
As of now the sale of buildings and open land have been kept out of the GST’s preview but we at TopNotepad expect that it will be taxed within the next 12-24 month.
To comply with the tax structure all builder and contractors are expected to have people, processes and systems in place. Big builders have already started to invest in GST software for billing clients and to file returns. Please note, under GST, taxes on key items used for construction have gone up even then the sector stands to benefit because of the inherent transparency this tax regime will bring in.
Our final word, GST is one tax that covers all goods and services this will make it easier for retailers and all other businesses to comply and also moderate overall taxation levels. While it looks very promising the positive effect of this new taxation system will surface only after 1-2 years of its implementation.