CREDAI has appealed the state governments to abrogate stamp duty on landed property to dispose of multi-point taxation after the GST approach. In an official statement CREDAI affirms that GST will be a major player in Indian economy as it assimilates central and state tax paying into an absolute tax system for the entire country. CREDAI urges state government to downplay the double taxation of realty by treating land nil rated GST regime.
GST benefits both the state and industry as it waives multiple taxation at the state and centre level and the related other indirect surges. Real estate sector come under 12% slab of GST, which was only a chip of the tax burden, whereas for all other sectors GST is being considered as their indirect tax liability. Real estate sector is at odds as state government levied stamp duty on immovable properties will be operating even after GST implementation.
Stamp duty adds on 5-8 per cent excess taxability on the total valuation of the immovable property. The duty is to be paid on each transaction and is levied by the state governments on circle rates or guideline values of possessions which are at random determined and far in overindulgence of the value at which transactions turns up. Except abatement for land is permissible, cost to the end purchaser would mount. The National Real Estate Development Council (NAREDCO) revealed that 12% GST on construction process meant for relieving the buyers, which would encourage the sale volume in the coming days.
Welcoming the GST roll out West Bengal RERA expert Mr. Mahesh Somani said, “GST takes in more than 16 major taxes and brings together under a single bind. It will levy a simplified tax policy to the consumers. Indian realty is the contributor of 5% GDP revenue of the country and is considered the second-largest employment title-holder.”
“Residential property sale in Kolkata will definitely gain from the GST implementation as market report says that prices of luxury properties are likely to drop by up to 5% in this FY. Yes, the sector is expecting more sale volume this year than the previous one,” added Mr. Somani.