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Title: Impact of GST on Construction and Real Estate Sector in India
Researcher: Mishra, Abhishek
Guide(s): Mandal, Bholanath
Keywords: Economics and Business
Economics, Commerce, GST, Real Estate, Affordable Housing ,Tax Base
Social Sciences
University: Nims University Rajasthan
Completed Date: 2020
Abstract: The Goods and Services Tax (GST) - India s biggest tax reform postindependence newlinewas implemented on 1 July 2017. The new tax regime seeks to newlinetransform the Indian economy with its One Nation, One Market, One Tax principle newlineby subsuming a host of indirect taxes charged at varied rates by the Centre and newlinestates, therefore bringing uniformity in taxation across the country. Its primary newlineobjective is to simplify the complex tax structure on the supply of goods and newlineservices. While this reform may have certain short-term negative impacts The earlier newlineindirect tax framework had challenges of multiplicity and cascading of taxes, apart newlinefrom other issues/complexities, both technical as well as from the perspective of newlineground-level practices by way of increased credits, reduced prices, uniformity of newlinepricing across the country, free movement of goods, etc., and the real estate sector newlineshould be no exception. The key feature of GST is to remove the cascading effect of newlinetaxes by making credits fully fungible. The objective is to ensure that businesses newlineonly act as a pass through for all taxes and that GST. newlineConstruction and real estate has been a booming sector in India, which is newlinefacing a major slowdown in the aftermath of demonetization. It has always been a newlinesector riddled with litigation owing to multiplicity of taxes and dual administration newlinemechanism; thereby exposing it to the conundrums of both Central and State levies. newlineCurrently, certain activities in this sector command a cumulative tax levy on newlineeffectively 140% of the actual transaction value owing to cascading effect. Further newlinethere are long standing issues which have not been concluded till date. newlineAn amount of US$ 1 trillion is expected to be reached by the Real estate newlinesector in India by 2030. The Real Estate sector will contribute 13 per cent of the newlinecountry s GDP By 2025. Massive upcoming of nuclear families, faster urbanisation newlineand rising household income will remain the key drivers for growth and newlinedevelopment in all spheres of real estate, including commercial, residential, an
Pagination: 1-16, 1-234
Appears in Departments:Department of Commerce

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