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Positive and negative impact of GST on real estate market

Posted by Brokerzip India on June 21 2017, 15:43pm

Positive and negative impact of GST on real estate market

GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes. The main reason behind introducing GST is to improve the economy of the nation.

Positive Impact of GST in India:

  • GST is a single taxation system that will reduce the number of indirect taxes. From now, a single taxation term would cover all of those indirect taxes.
  • The Prices of products and services would reduce , thus this system would prove to be beneficial for the people who are fed up of paying high prices.
  • This would reduce the burden from the state and the central government. With the introduction of GST, all indirect taxes would come under a single roof.
  • GST would not be charged at every point of sale like other indirect taxes so in this way, market would be developed.
  • Corruption-free taxation system. GST would introduce corruption-free taxation system.

Negative Impact of GST in India:

  • The introduction of GST in the country will impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.
  • GST is a mystifying term where double tax is charged in the name of a single tax.
  • Most of the dealers don’t pay central excise tax and cheat the government by simply giving the VAT. But all of those dealers would now be forced to pay GST.
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