Simplifying the complexities of the GST regime

Apex real estate body National Real Estate Development Council in association with KPMG conducted a knowledge seminar on the revised Goods and Services Tax structure for the real estate sector. The developers, as well as the affiliated fraternity, faced a challenging situation in identifying the change in the tax regime and regulatory implications which was announced in the month of February 2019. This initiative enabled all stakeholders of the industry right from developers to bankers and government agencies to break down GST into fragments and understand the nitty-gritty. The Dignitaries like Ms Sungita Sharma, Head, CGST, Mr Rajiv Jalota, IAS, Commissioner of State Tax, Maharashtra, Dr Niranjan Hiranandani, National President, NAREDCO, Adv. ShaileshSheth, CA Rajkamal Shah, CA Samir Sanghvi, CAKirti Shah were a part of the seminar and shared learning with everyone present there. Speaking on the occasion, National President of NAREDCO, Dr Niranjan Hiranandani said, “We are optimistic to convert concealed challenges into opportunities that are affecting the real estate industry. The revised GST rates are a welcome move and a major step taken by the government to give a boost to the real estate sector. It is essential for every developer to understand the functionalities of the new tax regime and this seminar is directed towards the same motive. NAREDCO as a body as always is inclined towards the betterment of the fraternity and is driven to elevate the status quo of Indian Real Estate Industry in the global map. “The technicalities of revised GST and tax structure are very crucial to understand to achieve maximum benefits. While the developers are thankful about the reduced rates, most of them are not aware when it comes to implementation of the same. To address this concern, NAREDCO organized a knowledge exchange seminar for the developers and other fraternity related to the real estate industry. We are thankful to the participants who attended the seminar to gain and share knowledge as this is the need of the hour in the industry. Thankful to the PM, FM and GOM for hearing and sorting out the issue of GST for the consumer on the whole and simplifying the same for the industry.” said Mr RajanBandelkar, President, NAREDCO West. “The new tax structure is better as the rates are reduced and a thorough understanding about development rights, lease agreement, etc. has increased, thus portraying an overall positive sign. Though complexities are there, but definitely that can be solved with educating the fraternity. Hence, it is time to we reinstate our faith in the new tax regime and its legalities and not get afraid.” said Sungita Sharma, Head of Central GST in Mumbai. Understanding the issues faced by the developers with regards to absorption of the earlier GST regime introduced initially in 2017, the government assigned a Group of Ministers to address the concerns of real estate fraternity. As a result, the revised GST rates of 1% without Input Tax Credit on affordable homes and 5% with ITC on general housing was brought into action from April 1st 2019. However, understanding the details of the new tax structure is crucial. With the motive to make the compliance easy and viable, this seminar by NAREDCO took shape.