Impact of GST in the Real Estate Industry ‘GST will be a game-changer for Indian industry, including for the real estate sector, since it will subsume more than 16 major taxes and levies into a single consolidated tax. Additionally, the unified tax regime will stop the unwanted practice of double taxation, which hurt real estate and other sectors, given their cascading effect that inflated prices for end users. With GST enforcing transparent transactions across all domains, this will be a blessing in disguise for real estate developers. ‘
It will bring down project costs which will lead to cheaper homes. Boost in home sales as GST proposes to roll multiple taxes into one leading to low cost of construction. This will inject more liquidity into the market.Increase in free flow of credit which will translate into an increased margin in the developer’s hands. Overall tax incidence on inputs like cement and steel is expected to decline, thereby leading to improved margins for the developer With the Real Estate Development and Regulation Act (RERA) also under implementation, developers may need to focus more on streamlining their processes which can enhance India’s attraction as an investment destination.