What is GST – The Goods and Services Tax
Quite literally, GST (Goods and Services Tax) is a tax levied when a consumer buys a good or service.
The current tax regime is riddled with indirect taxes which the GST aims to subsume with a single comprehensive tax, bringing it all under a single umbrella. The bill aims to eliminate the cascading effect of taxes on production and distribution prices on goods and services.
Video Source: Indian Express
GST on Real Estate
GST, once implemented, is one bill, that will have a significant impact on this sector. Real estate in India currently has two primary levies, Service tax and VAT, with overlap of tax base and constant disputes on the rate of tax, given the multiple options available for discharge of taxes across States. Here are few points on how real estate will be affected by GST:
Source: VCCircle / Indian Express
Featured Image – Business Standard