MUMBAI, 03 AUGUST 2016: Arguably India’s biggest tax reform, the Goods and Services Tax (GST) Bill was tabled – and passed – in the Rajya Sabha on Wednesday afternoon. “This is definitely good news, and we hope to see the positive impact being felt by the real estate sector,” said Niranjan Hiranandani, MD, Hiranandani Communities and Founder and First President, NAREDCO Maharashtra.
The real estate sector looks upon the Goods and Services Tax to be a harbinger of change, given that the sector currently faces a myriad of indirect tax related issues both, at the Centre and state level, he said.
“From a home buyers’ perspective, the key factor would be the GST rate applicable on purchase of residential units. We hope that the GST rate will be moderate, and the transactions get covered under the lower rate schedules,” said Niranjan Hiranandani, adding that the model GST law does provide an indication that the home buyer in general could benefit from the introduction of GST, if the GST rates are moderate.
“GST offers positive options to real estate; its impact should be ‘advantage home buyer’,” concluded Niranjan Hiranandani.
Niranjan Hiranandani is Founder & MD, Hiranandani Group, his recent initiative is Hiranandani Communities. He is the Founder and First President (Maharashtra), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.