It has been 4 months since Real Estate Regulation and Development Act (RERA) came into force, there have been crucial changes made in the real estate sector. With the implementation of Goods and Services Tax (GST), there has been a reduced tax burden on homebuyers.
The homebuyers are now opting for ready-to-move-in flats as tax burden has been reduced on them. The tax on the intact cost of the project that includes land will be 12%.
This will not only help builders to claim Input Tax Credit (ITC), but it will also result in making ready-to-move-in flats economical for homebuyers as compare to projects under construction.
It has been apparent that ready-to-move-in projects are always upscale in comparison to the ones that are under construction. Reason being, homebuyers will not have to wait for the construction to be completed or amenities not available, they can move-in directly without any headache.
In addition to this, selling of the projects is it ready-to-move-in has created fluidity for developers for their unsold projects. Moreover, they can invest this amount in their projects which are in demand.
The conclusion that is drawn from this article is that RERA, which aims at creating transparency and investment in the real estate sector is moving ahead on its way.
Also, GST, One Nation One Tax which is targeted for an increase in the prices in the market has proved that it is going to provide benefits in the long run. The mobility which is the one that everyone will now be looking forward to.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws