Realty doyens talk gains from GST, RERA

Realty players hinted that there are short term pains but long term gains following the introduction of Goods & Services Tax (GST) and the implementation of the Real Estate (Regulation and Development) Act. However, they held a unanimous opinion that with GST and RERA, opportunities will increase manifold, as there will be integration of taxes and transparency will be achieved in the sector, too.

Niranjan Hiranandani, Co-founder, Managing Director, Hiranandani Group, said, “As far as GST on real estate is concerned, there are challenges because the land prices are so high that a set off hasn’t yet been given. There are speculations that there will be an inflation in terms of cost of 3.5 or 5.5 per cent, depending on the type of construction and land cost. These challenges that will be dealt by the industry, and as the overall growth improves, I am sure, there will definitely be a rationalisation of these taxes.”

Ashutosh Limaye, National Director, JLL, said there will be an effective 12 per cent GST, which is high. “‘Today, most states have service tax and VAT, which is 9 per cent. Therefore, there will be an effective 3 per cent increase. The government is expecting to pass on …read more