RERA and GST – A Boon for the Real Estate Industry and Homebuyers
If RERA instilled confidence among homebuyers, GST has resulted in more clarity and more ease in owning a home. But how RERA and GST have exactly proved to be a boon for the industry and homebuyers? Let’s take a look.
RERA (Real Estate Regulatory Authority)
This revolutionary and the much anticipated move by the Government of India made way for the following –
1) More transparency
RERA has made it mandatory for the developers to mention the carpet area in every communication. In addition, developers can no more make exaggerated claims.
2) Legally secure homes
According to RERA guidelines, developers will have to submit the essential documents and information such as project plan, layout, government approvals, land title status, sub-contractors to the project and schedule for completion to the RERA and then pass it on to the consumer. This will ensure that the project adheres to the legal policies.
3) Timely Delivery
Cash crunch faced by the developers, often results in delayed deliveries. But now the builders will have to deposit 70% of the project funds in dedicated or escrow bank accounts to avoid delayed deliveries.
In case of delayed deliveries, the customer will now be entitled to a compensation equal to the EMI the buyer is paying to the bank.
5) Get what’s promised
Once the property is sold, the developer can’t make any changes to the plan without the written consent of the buyer.
6) After-sales service
If there’s any deficiency in the project within one year of possession, the buyer can contact the developer in writing and demand after-sales service.
7) Grievance redressal
RERA can be approached for redressal of grievances against any builder. Developers who violate the order of the tribunal will be imprisoned for a term of up to 3 years, with or without fine.
GST (Goods & Services Tax)
GST is touted as a game changing move. Let’s take a look at a few of its benefits.
1. Hassle-free tax system: Replacing 16 different taxes with one GST now means more clarity on the tax structure while buying a home.
2. Timely delivery: Initially, the developers has to undergo a long process and a lot of paperwork. With GST, there will be less paperwork and will speed up essential processes.
3. No double taxation: Now the buyers don’t have to bear the brunt of double taxation due to a number of confusing taxes.
4. Improved quality: A simplified tax system will create a positive impact and will attract a lot of foreign investment. In the zest to match International quality standards, developers will now focus more on quality and innovation.
5. Reduction in costs: Developers can now claim input tax credits on materials such as cement and steel. This means that the end consumer will thus only bear the GST charged by the last dealer in the supply chain, with set-off benefits at all the earlier stages.
If you want to leverage the benefits of RERA and make your wish of owning a home come true, take a look at Puneville in Punawale & Woodsville in Moshi by Pharande Spaces – TRU assured homes with a 10-year warranty and an array of meaningful offerings.
To know more about the projects.