GST may usher in clear and transparent taxation rules for the real estate sector in India. But the new law requires many clarifications for its effective implementation.
The Goods and Services Tax (GST) has now been passed by the Rajya Sabha as well as the Lok Sabha, and now needs to be ratified by at least 16 of 29 state assemblies. GST is a comprehensive indirect tax on sale, manufacture and consumption of different kinds of goods and services throughout India, with all other Central and state taxes intended to be subsumed under it. It has far reaching implications for different sectors of economy, including real estate.
Taxation and real estate industry
If we take a look at the real estate industry in India today, we find that there have been major tax changes in the last few years. However, these taxes are not uniform all over the country – different practices and regulations are followed in different states. It was the 46th Amendment to the Constitution that brought massive changes towards taxation in the real estate sector. Later in the following years, special powers were given to the state governments for implementing Value-Added Tax (VAT) on some specific kinds of transactions.
This story is from the September - October 2016 edition of Property Expert English.
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This story is from the September - October 2016 edition of Property Expert English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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GST Needs Clarity
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