Jun 1 2017 | Industry View

Ashish Puravankara, MD Puravankara Ltd

“GST will be a game-changer for the Indian real estate sector as it will create a level playing field for all organised developers and builders in the country. There are multiple benefits for both developers and home buyers with the GST implementation. A single consolidated tax system brings more clarity, transparency and avoids double taxation which is relevant in the Real Estate sector where developers and users end up paying multiple taxes and duties. Inefficiencies in the supply chain will be slowly decline resulting in prudent working capital management, better pricing power for all stakeholders in the value chain. Specifically, the impact of taxes on construction materials, cement and steel will come down considerably for developers which ranges between 12-18%. With the rates in place now implementation of GST to our business is expected to bring down the project cost for developers, thereby leading to lower acquisition cost for under-constructed apartments.”