GST system +Under GST +GST regime +MUMBAI: The consumers will have to shell out more for the ready to move-in flats under theas developers with large unsold inventories are planning to pass on the higher tax burden to home-buyers.However, the new flats will cost less, giving some breather to the developers of upcoming projects., the effective tax on under-construction projects has gone up to 12 per cent, which is an increase of 6.5 per cent. But the devil lies in the details and no one seems to have any clarity on that. "The intention of GST is to bring in efficiency in the entire tax system, and its implementation will see some teething issues. "But the affordable housing sector is happy as there is no tax on it. "Additionally, sectors ancillary to real estate will see improved supply chain efficiency with the removal of various federal tax barriers and creation of a common market, accelerating the delivery of goods," he noted.Atul Chordia of Panchshil Realty said they have only completed or near-ready projects which will be paying 12 per cent GST on the cost of construction.

Source: Times of India July 02, 2017 04:21 UTC