#Budget2016: Real Estate Sector Pins Hope On Budget Session For GST Roll-Out

In the run-up to the 2016 Budget Session, the entire nation is eagerly looking forward to the upshot of important legislations. Among many pending Bills is the Goods and Services Tax (GST) Bill. Termed as the most critical tax reform since Independence, "the economic integrator of India”, as Finance Minister Arun Jaitley puts it, will once again try its luck to get through.

Parliamentary Affairs Minister Venkaiah Naidu had recently said the government would leave no stone unturned to get the GST Bill passed in the Budget Session.

The Indian real estate sector, too, is anxious with regard to the fate of the GST Bill.

JC Sharma, Vice-Chairman and Managing Director, Sobha Limited, said, “There are multiple taxes such as customs duty, VAT/CST, excise duty, service tax, and entry tax levied on developers during the construction of a project. These taxes are collected at multiple points and vary from state to state. In addition, some of these taxes are levied by the central government as well. We want the present tax regime to be simplified and rationalized. The industry is eagerly awaiting the proposed GST Bill to be implemented soon. We believe that it will benefit the market in reducing the construction cost and bringing down property prices.”

Anuj Puri, Chairman & Country Head, JLL India, said, “The finance minister should announce a specific date for the implementation of the GST. This major reform will give the industry a transparent taxation structure and induce a major sea change for the logistics architecture, since logistics will be driven by cost and not by a regulatory regime.”

Echoing similar views, Prashant Tiwari, chairman, Prateek Group, said the long-pending demand for the clearance of the GST should become a reality now.

Once implemented, the GST will transform India into a uniform market by breaking the current tax barrier between states (Currently, the indirect tax system in India is complicated with overlapping taxes levied by the Centre and state separately).