The Goods and Services Tax (GST) will benefit the real estate and infrastructure sectors in the long term with taxes like excise duty, VAT, octroi and LBT subsumed into a single tax, removing scope for any ambiguity and evasion. While a well-defined tax structure in the form of GST will help the real estate sector evolve on the lines of an organised industry, it will also enhance transparency and bring accountability across the value chain. With the implementation of GST, developers will have a greater ease of doing business, which will enable them to focus on enhancing efficiencies and streamlining processes.
One of the key benefits of GST to developers is that they will now be able to avail credit for the input taxes paid by suppliers, unlike in the previous tax system. This will reduce the cascading of taxes and developers will have the option of passing the input credit to the buyers, which may help bring down prices in the long term. – Tejinder Pal Setia, Chairman, MTPL