Goods and Services Tax – GST – By: – Bijay Shrestha – Dated:- 3-4-2017 Last Replied Date:- 3-4-2017 – As we all know that the whole nation has been dreaming for the biggest indirect tax reform i.e. implementation of the Goods and Service Tax (GST) for a decade, it is going to become a reality soon. Ever since the thunder of GST has hit the nation, there are various assumptions, presumptions, and expectations etc. among the different stakeholders such as government, consumers, companies etc. as to how this biggest indirect tax regime is going to affect them. Named as One Nation One tax (though not, due to different rate structure), since the GST is going to have a huge impact in various sectors such as manufacturing, trading, banking and finance, telecommunication, real estate etc., every sector is busy in migrating to the GST, preparing the road map for GST implementation, formulating the plans to encounter any negative impacts and coming up with new designing and projections to boost
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sequently, many tribunals, high courts and the Supreme Court have given different judgments with regard to such issues. Moreover, the Real Estate Builder/Developer is not eligible to take credit of custom duty, excise duty which will add to the cost of constructions ultimately increasing the prices of apartments, flats etc. Also there is no provision to take credit of VAT against Service tax and vice versa. Due to the multiple taxes, the Builder/Developer has to maintain various books and records under different taxes, file multiple returns/forms and many times has to encounter with various tax authorities, which will ultimately increase the compliance cost and time. To reduce such harassment that is there due to multiple taxes, GST is expected to be the game changer which will subsume or replace various existing indirect taxes. The implementation of GST is likely to improve transparency and reduce tax evasion on account of better enforcement and compliance and possibly reduce cost of
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ee the correct picture of GST and its impact on the Real Estate Sector. After passing of these four Bills, still State Assemblies have to pass the respective State GST i.e. SGST Bills. Also the Government has yet to decide classification of goods and services under different rate structure; Valuation methods and rules; abatements and exemptions (currently available under service tax); reverse charge implications; implication of stamp duty on under-construction properties etc. etc. Because of these reasons, the exact magnitude of impact of GST on the sector cannot be determined as of now but would have to depend upon the actual implementation of the GST. But yes, the GST, a long awaited tax reform which is expected to improve India's GDP by at least 2% to 3% aims to consolidate various state and central taxes into a single tax thus making it one of the biggest tax reforms and making the country one unified market. Let s hope and see what GST will bring in coming days. Disclaimer: Th
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