Hello GST: How will it impact real estate sector?

In CNBC-TV18’s special series ‘Hello GST’, Menaka Doshi examines the impact of Goods and Services Tax (GST) on the real estate sector

Will implementation of Goods and Services Tax (GST) be a positive or a negative for the real estate sector? In CNBC-TV18’s special series ‘Hello GST’, Menaka Doshi analysis the same.

GST is not going to be positive for the realty industry, Sagar Shah, National Head- Indirect Tax, BDO India tells CNBC-TV18. Implementation of the bill will not subsume stamp duty levied by the states. States may, at their whims and desires, impose higher stamp duties to meet their revenue targets, he says.

In addition, an 18 percent GST rate will make for bigger tax burden.

Homebuyers will have to pay an effective tax rate of 11-12 percent in addition to the stamp duty, compared to the current six percent stamp duty in states like Maharasthra and Karnataka.

For manufacturers, the entire cost will be his cost because there won’t be any set-off, he says, adding, GST paid on inputs will be an additional expense.


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