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Benefits of GST to home buyers In the next lifetime

Goods and Services Tax - GST - By: - Puneet Agrawal (Athena Law Associates) - Dated:- 27-10-2016 Last Replied Date:- 27-10-2016 - The GST structure as it stands today shall only result in higher property costs for the home buyers. Non‑exclusion of land value from GST net, non-availability of ITC to developers and irrational Valuation Mechanism shall lead to such an anomaly. The Model GST law which has been shared with the stakeholders shall only add up to the woes of homebuyers unless nece .....

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e engaged in construction for the developers. The taxes so paid shall become a cost for the developer which would ultimately be borne by the home buyers. Further, the provisions of valuation have been so drafted that it would lead to arbitrary double taxation. In the Model GST Law, any material provided by the developer to the contractor for construction of building shall be included in the value of total supply of services by the contactor which would increase the cost. Now, GST shall be paid t .....

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ing effect and would thus be a matter of serious concern, for the homebuyers, for after all developers would pass on his cost to them. The situation is further frustrated by non-exclusion of value of land from the transaction value. In absence of any specific exclusion, GST might be payable on entire value of the flat which shall also include the cost of land. Cost of land is generally huge, especially in metropolitan and other big cities. Presently, there is no VAT/Service tax liability on valu .....

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