Call it the RERA impact or the Rebirth of the real estate sector in India both ways, both developers and home buyers will win.
Mumbai property market is seen bouncing back with a few top developers like Oberoi Realty, Runwal Group, Sheth Developers etc absorbing the additional GST charges which were levied to the home buyer.
Interestingly, the earlier the home buyer was paying 5% Stamp Duty, 4.5% Service Tax and 1% MVat, now he has to pay 12% in which the Input tax credit is expected by the developers to be passed on, which is unclear to most of the developers today.
In order to not spoil the pipe line sales and disrupt the markets further, a lot of developers have decided to pass on the total benefit of additional GST and charge consumers only 5.5% in the accounting as an ad on tax which they were paying prior to GST.
In one way, it's simplified but in another way it can be complex for the home buyer to understand the accounting, but with excellent teams of developers this challenge is abated.
We look forward to the festive season and a simple advise to home buyers, that prices are low and the cycle and sentiment is low so this is the time it's a Buyers market so go ahead and take the plunge, it can't get better than this.
In bullish markets the rates are higher in any case so think and make the decision quick.