GST may bring a lot of relief to the real estate sector. GST council has announced the statutory tax rates under the Goods and Services Tax (GST) and same will be become effective from 1 July, 2017. These new GST will replace all applicable indirect taxes. While some goods and services are going to get cheaper, some are set to get taxed more.
Under-construction properties will attract the Goods and Services Tax (GST) rate of 12 percent which is likely to keep the impact neutral or positive for homebuyers. Currently, a homebuyer has to pay several indirect taxes, including excise duty, value-added tax and service tax, which amounts to a tax outgo of about 11 per cent, excluding STAMP DUTY.
These, barring stamp duty, would be subsumed in GST under the new indirect tax regime that will also allow input tax credit for developers. The real estate sector, is awaiting clarity on the abatement rate for the land cost.
Completed and ready-to-move-in properties will also be exempted from the new GST taxes. However, stamp duty and property taxes will most likely be applicable to immovable properties as usual.
GST will impart more transparency to the sector, which faces a perception issue. GST would provide an audit trail for better control and monitoring of the sector.
Indian Cities are fast getting mapped under the GIS. While Delhi/NCR, Hyderabad and Bangalore are already navigating the route of technological development.
The start of the recent government at the centre conveyed with it numerous buzz words in the real estate sector, including the like of smart city and digitisation. As the idea of digitising many processes of real estate started developing and getting accepted, new concept was born – GIS Mapping.
Let us understand what correctly GIS Mapping means and its advantages for realty landscape.
What is Geographic Information Systems (GIS)?
Geographic Information Systems is a computer-based tool that analyzes, stores, manipulates and visualizes geographic information on a map. GIS can show many different kinds of data on one map. It enables people to more easily see, analyse and understand designs. Few tolerant state governments have used GIS mapping to find lands for development, for certain epitome limitations such as size, access to transportation, availability of water and distance from urban house etc.
What is use of Geographic Information Systems in Indian market?
To assisting the government scale the permitted status of land and built properties, GIS mapping is being used for differentiating between developed and developable areas. Advantages of GIS map, “GIS mapping for metropolitan development is next step, where developers can combine numerous constraints to find likely areas and developmental needs to particular locations. It can possibly determine cost and time of transportation and housing which could help in knowing locations for getting projects, mainly to the government which needs to identify likely location from various amenities such as schools, medical and groceries.
Generally, this innovative intelligence can be appropriately used to reposition or transform an area by recognising the available and required facilities. With GIS mapping taking Indian cities by a blizzard, the nation definitely is on its way to a transparent and believable business functioning driven by digitisation.