This act will result inincreased demand for the real estate market; also it has changed the price range for the better, because the price range is now reduced for under construction and completed projects. After the implementation of this scheme, the buyer will be entitled to an additional discount of 14 per cent. The beneficiaries under the Pradhan Mantri Awas Yojana scheme would be eligible for a subsidy of up to Rs 2.67 lakhs on their home loan. This scheme would benefit EWS / LIG households earning up to Rs 6 lakh per annum who are first time home buyers. Utilise this amazingopportunity and book your dream home with a reputed builder,having a good track record in affordable housing projects.

The tentative calculations are simplified in the table provided below.

Notes:

*Considering customer falls under PMAY scheme conditions

*Carpet area of the house to be as per PMAY

ACE offers 2, 3 and 4 BHK apartments in Noida and other locations at a reasonable and affordable price. The projects offered by ACE are loaded with best facilities and amenities like club house, swimming pool, basketball court, amphitheatre, relaxing areas, kids play area to name a few. The proven history of delivering every project before time has already made Ace a giant in the real estate industry.

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In reality, GST is introduced to simplify multiple indirect taxes, tax compliances and reduce the scope for double or additional taxation. So, there is an obvious reason for home buyers to be happy, even if there’s only a little in the pricing.

GST is here to bring more transparency to real estate which has faced many trust issues in past. And we expect a positive impact!

The taxation earlier was too complicated for buyers. For example, buyers earlier had to pay taxes depending on the construction status of the property and the location. Buyers also had to pay VAT, service tax, stamp duty and registration charges on purchase of an under-construction property. However, if the purchase was for a completed property, the tax applicable were stamp duty and registration charge.

Furthermore, since VAT, stamp duty and registration charges were state taxes, each state specified its own figures. Service tax was a central levy and was charged on construction. So the calculation of taxes was very tedious in the earlier regime.

But now, GST charges all under-construction properties at 12 per cent of the property value. Not only that, but now the financial transactions will become more transparent

It is therefore, a welcoming step by NarendraModi government.

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Although, the services provided by housing societies Resident Welfare Association will increase its amount under Goods and Services Tax. The RWA will only pay the GST if the payment is more than INR 5,000 per person per month along with the goods for the common use of all the members in a housing society.

On July 8th, The Federation of Noida Residents Welfare Associations wrote to Mr. Arun Jaitley, Union Finance Minister requesting to exempt GST for RWAs. In case the total turnover of an RWA is INR 20 lakhs per year, then supplies will be exempted from GST even when charges per member are more than INR five thousand. The RWAs will pay the tax under Input Tax Credit for goods like water pumps, generators, maintenance services etc. The ITC of Value Added Tax on goods was not there before GST period and was part of the cost to the RWA.

The residents are now experiencing GST free RWAs as they do not carry any profit for any business or any activity and are solely formed by the residents and for the residents.

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