From an era where taxes overcrowded the market to where we are now, countries have come a long way. Keeping the urge to boost revenue with time, multiple sectors reroute themselves to soaring their nation’s economy to newer heights.
The real estate sector is one of the many that has been a major contributor to the nation. Being the highest revenue-generating sector among all, it helps with uplifting the GDP of the nation with a contribution of over 6-8%. Along with steady growth over the years, this sector has witnessed fruitful investments that make it worth putting your hard-earned money into.
Similar to any other industry, taxes have been levied on the real estate sector as well. Before purchasing a flat in Kanpur, one was bound to be charged with indirect taxes and VAT. With changing times, the inclusion of GST prompts a turn when it comes to the real estate sector. Before we move into specifics, let’s learn more about what GST has to offer.
GST, commonly termed Goods, and Service Tax is by far one of the biggest evolutions since the post-independence era. Brought into action from 1st July 2017, this taxation practice has ensured uniformity in taxes all across the country. Not only does it have innumerable positive aspects to offer, but it's also safe to say that this is still a work in progress.
This taxation process has replaced 16 major taxation processes that were religiously followed over the years. They are
- Central Excise Duty
- Service Tax
- VAT
- Central Sales Tax
- Octroi
- Luxury Tax
- Entry Tax
- Purchase Tax
- Advertisement Tax and much more
Apart from slithering its way into making an impact in the real estate sector, purchasing flats in Kanpur now benefits both buyers and sellers. Here’s how
Purchasing a home covers a list of benefits for your loved ones. Apart from added benefits with the best flats in Kanpur, buyers reap the benefits of this tax regime. Earlier, purchasing a flat would come with a list of extra payments that forced one to think twice before investing in any property.
With VAT and other indirect taxes being state-specific, their prices varied from one state to another. Additionally, builders were also charged with CST, custom duty, and OCTROI for which resources were scarce.
With the application of GST, a single tax rate (12%) is now applicable on under-construction properties. Additionally purchasing completed projects comes with the added advantage of zero GST charge. This price reduction gives buyers an added advantage through a “wait and watch” approach that validates every purchase decision one makes.
If we consider the time before GST was a thing, developers considered every development an obstacle hurdle. Developers building the best apartments in Kanpur were charged Excise Duty, VAT, Customs Duty, Entry Taxes, and more on raw materials, service tax, labor charges, etc.
These would ultimately add pressure on the buyer that altered their decision behind making a home purchase. With GST making an entrance, developers are charged a lot less due to the availability of input tax credits. Also, with a reduction in the cost of logistics, developers across the country witness an improvement in their profit margins.
Even though the addition of GST costs them nothing, but time in calculations, it needs to be thoroughly checked before being passed on to the respected buyer.
Adding a list of benefits doesn’t end there. GST inclusion brings a list of benefits that cements the purchase of any property, especially in a developing city like Kanpur.
Better transparency to avoid any miscalculations from both buyers and sellers
Making buying home spaces a lot easier and less complicated
Opening gates to foreign investments without imposing any additional burden on them
Both GST and RERA would do nothing, but increase transparency in India’s real estate sector. This reduces long, tiresome processes and promotes a tension-free buying process with added benefits.
With the inclusion of GST, Kanpur real estate has benefitted from the same. Ritu Housing sets an example for others.
There’s no denial of the fact that the introduction of GST comes with a set of advantages and disadvantages. Not only has this cut down on the hassle of paying multiple taxes, but it has also cleared multiple aspects for both buyers and developers.
GST is controlled by the Central Government and needs to be paid by every citizen of the country. This gives customers added benefits with every apartment purchase. Ritu Housing- a luxury development in Kanpur offers the best apartments in and across the city.
With a list of benefits that one can lose count of, purchasing this Kanpur real estate project proves to be beneficial in the long run. So let’s make home purchasing a win-win situation with GST and Ritu Housing here to help you live better.
