GST has a wide impact on every possible sector and this time it has far reached towards the Housing industry which is claiming it for a high volume and low housing facility for everyone. The sourced information has been recovered from a white paper which is name Decoding GST and Real Estate Regulation by RICS, a self-regulatory professional body for qualifications and standards in land, property, construction and associated environment issues.
It also interprets the imposition of similar penal interest for developers and home-buyers with incentivising timely delivery of projects, helping and to ensure real estate projects get completed on time. Sachin Sandhir, global managing director of Emerging Business, RICS says that “GST will lower real estate costs for the affordable segment of housing while increasing costs for the premium segment. A large part of the real estate market – almost 70% is skewed towards the middle to a high-income segment of the housing. We might see developers (especially smaller ones) shift focus to low-income housing to gain from GST,”
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The documentation also said that GST alone cannot deal the problem of real estate and it is the responsibility of both buyer and seller to stick towards the goal in an ethical way. Some of the policies like land and housing/ commercial stock management, ensuring availability of appropriate financing resources etc should also be employed to extract benefits in GST.