Transparency, confusion lead to a mixed response

The Goods and Services Tax (GST) has received mixed response from the realty sector. While secretary of the Confederation of Real Estate Development Association (CREDAI), Bengaluru, Suresh Hari says GST is a comprehensive tax, which has ushered in transparency in the realty sector between customers and the realtors, he is unhappy with the current confusion over it.

“The GST has ushered in transparency in the realty sector. Consumers can now shed their fears and go ahead and buy property as many hidden charges have been removed,” he says.

Recalling that earlier consumers had to shell out different taxes like Value Added Tax (VAT), Excise and Service Tax besides the registration fee fixed by the state government, he points out that under GST multiple taxes, including the Swachch Bharat and Kisan cesses, are merged.

"Since all major builders were registered under VAT and paid the tax after collecting it from customers, this league of our clients will not feel the pinch. But small time builders and those going in for individual house construction will bear the brunt of GST as they will have to shell out at least 12 to 20 per cent more in tax now,” he adds.Lamenting that GST has not been spelt out or explained clearly in layman terminology, he says while under the new tax regime there will be two sets of officials engaged in enforcement - one from the central GST and another from the state GST unless their roles and responsibilities are laid down clearly and an authority is set up to monitor them, there is bound to be confusion.