Introduction of GST will have a positive impact on the real estate industries: Laxman Jaiswal
The GST will roll out on July 1, 2017.
Speaking about the one tax structure, Jaiswal said: "It will reduce the tax burden on the developers. Construction cost would be reduced to some extent and this benefit can be pass on to the buyers/customers. This will also create a positive effect on the Ancillary industries. GST will bring a lot of transparency in work method. Developers will reap the benefits of many taxes which will be subsumed by GST."
Contrary to several political party's thought, Jaiswal opined that GST will not have a negative impact on real estate sector. "Overall, GST appears to be a benefactor for the real estate regime, primarily in light of the expected free flow of credit, which should translate into an increase in margin in the hands of the developer. The GST regime is expected to impart greater transparency through market mechanism, it is imperative that real estate transactions forms an integral part of the proposed GST design".
"If public understand properly then no question arises for negative impact," he said.
Transparent taxation system, price reduction, splitting of tax burden, absence of hidden tax are some of the advantages of GST, according to Jaiswal.
However, he demanded improvement of infrastructure facility, removal of double taxation system, subsidy for LIG & MIG projects, concession in the stamp duty & registration cost, from the government.