If you are asked that,” what is the most trending thing which is going on in the market?”The answer will be GST. It has completely changed the scenario of the market in the entire nation. This can be claimed that the GST status has evolved with more growth and depreciation. The stock market which was previously assumed the most flickering one is now in a competition with the on and off shores which has came up with GST.
Coming to the aspect of the real estate, this can be stated that it is the most vulnerably affected area due to GST.
Goods and Service Tax (GST) has gone through the maximum revolutionary taxation reform which will be inscribed in the taxation history of the habitat.
So if we take a deep look on How GST affected on Real Estate? Then the following points are necessary to read.
1. Residential real estate- The sales are highly affected due to addition of the GST. There is assuage noticed for the loan seekers or the ones who are under the coverage of home loans. Government levies around 12% of tax under the coverage of GST which can be a huge issue in the domain of the residential real estate.
2. Rental housing- Even the rental housings are highly affected by the addition of GST in the account. It has around 2.4% GST added up, which leads to the decline of the margin or stagnation of the whole business and as well bothers the overall business.
3. Commercial real estate- The GST for commercial leases was stated to be 15% which is quite impactful and shocking. It has also dismantled the overall taxation.
4. Affordable housing- The sector is devoid of GST till now; still the government can come up with norms about the applicability of the GST in this case. The subsidies and other beneficiaries fall into this category.
Therefore GST has made a drastic change to the entire economy of the nation. Let’s see how the entire economy shuffles in the upcoming days in the field of real estate.