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A prospective buyer must thoroughly go through the original copy of the agreement with the builder. One must verify the original documents of the property. The title of the Vendor to the property must be clear and marketable. The buyer must search the title re port for the last few years.
While experts. GST handed out in the past 18 months. the tax break forhe common man’s list increase in cap of interest paid on home loan, by home buyers, from Rs 2 lakh to Rs 3 lakh. The first-time.
Hence presently most homebuyers. post gst price of unit is reduced by 20% i.e., it becomes Rs 80 then final cost to end customer will be 80 + (13.5% of 80) i.e., Rs 90.8 which is much less than Rs.
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Now, with the introduction of the Goods and Services Tax (GST), the total incidence of tax will increase from 5.5 per cent to 12 per cent. However, developers will be able to avail of input credit, on all the goods and services purchased and spent in the construction of the property.
The cost they bear for these come to 20 to 25 per cent of the cost of materials they are buying. So, with the GST rate, between 12 and 18 per cent, it will reduce the cost of production for developers. This will be good for buyers, as developers will be able to pass a part of the benefit to them," Dhawan adds.
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Home buyers tax liability to fall due to GST, says government The government has also asked builders to not ask customers to pay higher tax rate on installments to be received after imposition of GST.
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While GST may not burden home-buyers if a developer passes on its benefits, experts say implications depend on project cost and its stage of completion Along with a number of policy reforms, the real estate sector is believed to have an impact due to the Goods and Services Tax (GST).
GST. builders would be forced to accept a lower profit margin by absorbing a higher cost or raise prices in a bid to offset such costs. According to experts, if the market is healthy and favourable.