RERA and GST impact: Corporate housing societies to be high-priced

The outbreak of the Real Estate Regulation and Development Act (RERA) and Goods and Services Tax (GST) has created such an environment in the market that has elevated the prices of corporate housing societies (CHS).

Reason being the registration still need to be done under the RERA Authorities and GST as well.

Up to now, 1 housing society had been registered under RERA and at least 10,000 cooperative societies, which are in the process of developing drafts, to be registered under RERA.

Moreover, all CHS’s must be registered under GST as their annual turnover is likely to increase the threshold limit of Rs. 20 Lakh.

Once a CHS is registered under GST tax regime, it also has to comply with the provisions of the reverse charge mechanism, under which if it makes payments to unregistered service providers such as cleaners, electricians and plumbers, it will have to bear the GST of 18% on such payments.

Source: Times of India

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