How Input Tax Credit Benefits the Home Buyers
Are you looking forward buying a new home in Pune? Are you bothered about the newly imposed GST that could increase your estimation and let you regret over your decision? Though the switch over to GST has been considered as one of the biggest tax reforms in India, still there are a number of aspects that have made the home buyers contemplate over it through some different fame. Home buyers looking for under construction flats in Pune are most likely to have such conception that the imposed GST credit might have an adverse effect on their budget estimation. However, this is where the notion of input tax credit paves in the scenario and makes sure that the investors are not duped from any slant.
What is Input Tax Credit?
Input tax credit is the tax you claim at the time of paying tax on output; you can reduce the tax you have already paid on inputs.
The tax paid on final product is Rs 450/- (output)
And the tax paid on purchases is Rs 300/-(input)
so you can claim the Input Credit that you paid on the purchase of Rs 300/- and deposit only Rs 150/- in taxes.
Top projects by developers who are offering input tax credit benefit to home buyers
Input Tax Credit for Real Estate
The mechanism of input tax credit is available for you, when you are covered under the GST act. With the Indian real estate going through a number of transformations in the recent times and especially with RERA addressing the issue of non-transparency, the home buyers are not only provided with a peace of mind, but are also assured with the fact that their investment will not go into waste. At the same time, input tax credit or input tax makes it even more secured for them by making the builders offer a certain percentage of benefits to the buyers.
Though the implementation of GST credit has been a positive sentiment booster for the home buyers, it may not be quite effective in toppling down the price of residential properties. Nevertheless, it’s expected to come to a great aid of the collaborators of the residential real estate sector, as it will perk up the simplified tax structure to a significant extent.
With GST coming in, a certain hike has been imposed on all the construction materials and this is the reason why the builders could have inflicted the same on the buyers as well. But, with input tax credit or input tax into effect, the home buyers are likely to get a grant which, quite obviously, is going to dish up their interests to a significant extent. There are number of developers in Pune who have already initiated this practice and with this, a greater transparency is also expected to usher in, thereby providing the buyers with enough succour and comfort. As for instance, High Mont and Bramha Builder in Pune have already started giving 6% benefits to the buyers.
Input tax credit, by obliterating the minimal confusions of real estate transaction, will go a long way in regaining the buyers’ confidence.
Key Terms Related to Input Tax Credit under GST India
What is Input?
Under GST law goods except capital goods purchased for manufacturing products in a business for final sale is known as input.
What is Input Tax?
Under GST law when goods and services are bought the tax paid on the purchase of such goods and services it is known as input tax.
Input Credit in GST
Any person who is registered under GST can claim Input Credit for tax paid on purchases.
Find below residential projects by top Builders in Pune who are giving Input Tax Credit Benefits to home buyer. Builder are providing Input tax Credit benefit from 2% to 6%. to home buyers.