Goods and Services Tax (GST) intended to substitute numerous levels of taxation, affected the real estate sector – from home loans and housing purchase to rentals, across several segments and the undefined or grey areas impacted the final price for a home seeker.
The option of getting a full input set-off credit that developers welcome on under-construction projects would not be applicable on ready-to-move-in flats. In the case of premium properties, while the basic construction cost may come down a little, (keeping in mind that the input tax credit is limited to 12%), it will not be sufficient to bring down the fresh tax liability to nil because of the taxes paid on other expenses.
Interestingly, for the real estate sector, the accomplishment of GST will increase the confidence among property buyers, where buyers can buy ready-to-move-in property at 0% GST. Ready-to-move-in properties would be desired by homebuyers as this sector is out of the GST sphere.
With 0% GST, the whole exercise of GST in real estate is to encompass the project cost of developers where GST is also included; the rest of the credit input for construction cost of materials will be passed on as profit to buyers.
If you are planning to invest in a good property, Hiranandani communities is the best option you can look for. Nestled within lush landscaped gardens and possessing essentials like a world-class hospital, a school with a large playground, superstores and retail stores, to luxury facilities like a well-designed clubhouse, swimming pools, a gym, yoga areas and sports facilities, Hiranandani Parks has this and more to choose from with luxury apartments for sale in Chennai. Each apartment thoughtfully designed to cater to all your lifestyle needs.