Why GST will not trigger a hike in property prices?

TAXES BORNE BY A DEVELOPER AT PRESENT Central excise duty on most construction material: 12.5 per cent VAT on construction material: 12.5 percent to 14.5 per cent in most states Entry Tax: Varies from state to state. Input Tax Credit of the above taxes is not currently allowed for payment of Service Tax Credit of these taxes is also not available for payment of VAT on construction of flats TAX TO BE PAID UNDER GST Full input credit would be available for offsetting the headline rate of 12 per cent As a result, the input taxes embedded in the flat will not and should not form a part of the cost of the flat As input credits would take care of the headline rate, refund of overflow of input tax credits to the builder has been disallowed The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers by way of reduced prices or instalments WHAT IF A BUILDER STILL CHARGES EXTRA POST GST IMPLEMENTATION? Despite this clarity on law position, if any builder resorts to such practice, the same can be deemed to be profiteering under section 171 of GST law