In current scenario, the stamp duty is being paid by the home buyers that fuels the price of home at the time of registry after paying an indirect GST while booking and taking possession of their unit.
In a bid to provide relief to the home buyers by around Rs 3 lakh to Rs 5 lakh while buying home, Indian realtors have demanded from the Narendra Modi government to incorporate the stamp duty into the orbit of GST. In current scenario, the stamp duty is being paid by the home buyers that fuels the price of home at the time of registry after paying an indirect GST while booking and taking possession of their unit.
Speaking on the demand Manoj Gaur, Vice President CREDAI-National chapter told Zee Business online in a written statement, “GST’s inclusion in the country has allowed the developers to pass on the benefits of the input tax credit to the buyers. Bringing stamp duty and registration charges in the ambit of GST will be highly appreciated if the Budget addresses it.” He said the move will help government to eradicate hidden cost that home buyers have to pay at the time of registry. The managing director of the Gaur Group added that once the buyer has already paid GST as a hidden tax, what is the meaning of forcing them to pay stamp duty at the time of registration of his unit?
Standing in sync with Manoj Gaur of CREDAI; Harvinder Singh Sikka, Managing Director at Sikka Group told, “We would expect the government to bring into incorporation the stamp duty in the sector within the range of GST. The various subsidies provided under the government policies have been of great assistance in healing the realty market, but still some factors including the Single Window Clearance and the status of Industry to the real Estate sector needs heed to make a significant and positive change for the market.”
Nakul Mathur, Managing Director at Avanta India told, “To overcome the impact of reforms like GST, RERA and demonetization, this time expectations are high from the government. We are hopeful that the interim budget would encourage, strengthen & improve the real estate sector and will also pick up pace in GDP growth. Also Real Estate Investment Trust is yet to be listed and tax reforms for REITs must be thought about as well, considering its long term benefit for the sector and country.”