GST Is Not That Simple At It Was Labelled

133

It seems that Good & Services Tax (GST) has whipped out enraged mass. GST goes beyond protracted rhetoric. GST was said likely to combine multiple taxability into a single one. Those multiple taxability includes- central taxes such as service tax and excise duties, and state taxes, such as octroi, entry tax, VAT and so on. GST will dematerialize 17-18 individual tax paying into a specific one. GST is the biggest tax reform till present date and came after 15 years of deliberation.
The entire commodity market looks spaced out with GST roll out. Shop-keepers are unsure regarding the flash price of the pre-GST stocks. The old MRP includes VAT which can’t be sold on new GST rates. Fresh lots are likely to have revised MRP from the manufacturers’ end, which will increase commodity prices considerably. It’s being said that after demonetization GST hits the market in a foul way.

Citing the example of real estate, GST will lead to a reduction in property price and gold. Ready-to-move properties won’t attract GST. Under construction properties will be under 12% tax slab and maintenance cost of the co-operative housing society will witness 18% tax net. People, willing to buy flats in Kolkata and other metro cities in India will be on the profit-making side while investing in ready-to-move apartments or budget apartments in the major locations. A realtor can claim input credit as many as 167items and reduce the cost of the construction. Post GST property prices will decrease by Rs 400-500 per sq ft.

Naturally, homebuyers will consider ready-to-move in properties are the profitable choice of investment, as these are kept out of GST purview. Simultaneously developers will utilize this market sentiment to get rid of their on-hand inventories. But for medium-priced and premium class luxury projects GST will have a diverse impact. Nevertheless, government has approved deduction of land value equivalent to one-third of the total amount charged by a developer. According to the market experts for GST property price will be marginally slashed and tax liabilities for owning property to the end-users will be just about the same.

LNN (Liyans News Network)

Leave a Reply

Your email address will not be published. Required fields are marked *