The Indian
real estate sector is expected to grow and touch $200 billion by 2020. For over
last one decade, housing sector itself has had a 5-6 % consistent contribution
towards Indian GDP along with being one of the primary contributors towards
employment generation. This sector can be broadly classified into four
sub-sectors; housing, commercial, hospitality and retail. As the country moves
towards urbanisation, this sector’s growth will be well complemented and the
demand for housing and commercial divisions is bound to move north. The much
awaited Goods and Service Tax (GST) is to be tabled in the upcoming winter
session of the parliament commencing from 26th November, 2015 and
ending on 23rd December, 2015; and if implemented it can prove to be
a real game changer if formed and executed in a planned manner. Apart from GST,
Land acquisition bill and real estate bill will be two key bills to look out
for.
It has been correctly pointed out that a single GST
will be the real need of hour in order to create smooth functioning of this
sector. “A well-defined GST implemented for the country will bring about a
relief for this sector and its customers. Commercial realty players will be
hugely benefitted as all the lost Cenvat credit, which is in current regime a
cost to commercial developer can be availed if GST is applied in a free flow
manner that will also help in reducing costs. A much simplified single tax
rate, reduced construction costs and better transparency in the sector will be
much welcomed by the developers and its customers”, shares Mr. Mukesh Khurana,
MD, Rudra Buildwell.
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