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21 Jul 2017

Buying a home before & after GST

The Goods & Services Tax or GST is one of the most important and talked about economic and tax reforms in modern India. It was implemented nation-wide on the 1st of July 2017.

If you’re looking to buy a home now, then you must know that buying a home before the implementation of GST was a lot different than what it will be from now on. Here’s a closer look:

  Before GST After GST
1. Clarity on pricing
  • The Indian tax system had an array of taxes that were levied on goods and services in various stages.
  • This multi-level taxation was not simple to understand. Especially for homebuyers, the prices escalated greatly because of VAT, CST and other taxes.
  • GST has subsumed over 16 other taxes including:
    • Central Excise Duty
    • Service Tax
    • VAT
    • Central Sales Tax
    • Octroi
    • Entry Tax
    • Luxury Tax
    • Advertisement Tax

This will provide more clarity to homebuyers when it comes to the final pricing of their homes.

2. Business Processes   Before GST, a lot of paperwork related to taxation was required. Also while transporting raw materials or goods, transporters had to wait outside state borders and pay octroi and many other charges. The one single tax has removed the necessity of having taxes like octroi and other transportation related taxes. Instead of stopping at every state border to pay, the transporters can now pay the tax with just one single payment. This will reduce the overall time to transport goods.
3. Foreign Investment Even though the amount of foreign investment in India’s real estate was quite respectable, it never reached its full potential because of the complex tax system. A simplified tax system is bound to attract more NRI investment. This influx of foreign investment would not only improve the overall industry but also improve the overall quality in Indian real estate as developers would try their best to match international quality standards.

Also, it is expected that GST will add around 2% to India’s overall GDP.

So,If you’re looking to buy a home in India’s most futuristic development, then head over to Amanora Park Town in Hadapsar, Pune. Explore luxurious residences in a world of comforts & conveniences!

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