Even as the goods and services tax (GST) regime has brought in transparency and accountability in the realty sector, the industry feels a lot more clarity is required on the taxation front so that the benefits of ‘one nation, one tax’ can be reaped by all stakeholders.
The GST regime, which was implemented from last July 1, has also failed to bring down property prices, an impact that consumers were eagerly waiting for, say industry experts.
“Although it was anticipated that GST will reduce property prices, we have, in fact, not seen any significant impact on the ground. If the stamp duty and registration fees would be subsumed under the GST regime, we would definitely see the overall cost of property coming down,” says Anarock Property Consultants chairman Anuj Puri.
When GST rates were first announced, the initial rates for real estate were 12 pc and 18 per cent, which were later revised down to 8 per cent for affordable housing and 12 per cent for other segments.