A couple of years ago when the implementation of GST- Goods and Service Tax has introduced a new wave just spread in the market. It was one of the brilliant steps taken that cut down the tax to lower levels. It has benefited a number of the sector but ahs immensely improved real estate world. It completely reduced the tax burden from this industry and due to this the price of the properties immensely reduced.
Real estate is one of the most important sectors that include a number of customers, developers, real estate companies in Lucknow and stakeholders. They all waited to see the impact of GST on their business.
But to understand the impact you first need to know complete details about GST.
It is basically a value-added tax that is found at every stage of the supply chain. The main aim of GST was to bring transparency in the sector by cutting down all the extra taxes like central, excise, customs and others.
In big cities and states its impact is seen variedly like a number of people started buying luxury projects in Lucknow and other cities.
GST also impacted real estate developers. Like in the earlier tax regime the builder had to pay a number of taxes but now it is not like this. All the other taxes like custom tax, VAT and other taxes have been removed and this has somewhere cut down the prices of properties too much lower levels. Now the number of taxes that were paid earlier are submerged into one and reduced to another level.
Also now there is more transparency in the sector as cutting down of taxes means that the people in between who use to eat a chunk of money are now not able to get that amount. There is no more transfer of black money in the market now. People can directly talk to the builders and start planning about their home rather than involving two or three people in between and giving them some settling amount for the property.
Earlier when it is said that it is luxurious then it just goes out of the range of average and higher middle-class families. Why? Because of the money that is apart from the property rates incurred in between use to suck the whole savings of people. Now because of the elimination of extra taxes and money, even the middle class can think to buy a luxurious property.
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