To subsume almost all indirect taxes in India, except for a few state taxes, the government, in 2017, launched the Goods and Services Tax (GST) regime that is in line with globally-accepted tax regimens.
The Goods and Services Tax (GST) covers real estate in India through works contracts and building and constitution works, as all components used in the development work attract GST. To put it simply, covered under the new regime is the Indian construction industry, which continues to attract high rates of taxes through a blend of levies imposed on the purchase of various building construction materials.
In spite of the many policy support measures that have been announced by the government and the banking system and several discount offers launched by the builder community, rates of properties in India’s most active markets continue to move upwards, on the back of a spike in rates of building and construction materials. In the past few months, leading to September 2021, prices of construction materials have shown nearly 20% increase, primarily because of supply concerns. With no correction in GST rates, developing residences continues to be pricey for the builder, making purchases pricier for the buyer. According to industry estimates, the average price to develop a sq ft of space now stands at Rs 2,000. This means the buyer has to pay a price much higher than what the builder spends.
Discussed in detail in this article are the taxes one has to pay as GST on various building materials.
No comments:
Post a Comment