A Study Of Influence Of Goods & Services Tax (GST) On The Demand For Indian Real Estate Market

Abstract

Goods and Services Tax (GST) was introduced to plug the loop holes in indirect tax collection in India. It was also intended to bring about simplicity and transparency in the collection of taxes for goods and services. The primary objective was to streamline the taxation system by amalgamating numerous Central and State taxes into a singular tax framework, thereby alleviating issues such as cascading or double taxation and facilitating the creation of a unified national market. From a consumer perspective, the anticipated benefit would be in terms of reduction taxes levied on goods and services, estimated to range between around 30%. Additionally, the introduction of GST was anticipated to enhance the competitiveness of Indian products both domestically and internationally, consequently fostering economic growth. Notably, the transparent and self-regulating nature of GST was expected to streamline administration processes. The proposal for transitioning to GST was initially introduced by Finance Minister of India in the budget session of 2006-07. A committee constituted by the finance ministers of all the states was given the task of formulating a structure for GST building upon its prior experience in designing State VAT. A functional group consisting of representatives from central and state governments studied in details the various aspects indirect taxation.  The first outcome paper on GST served as a foundational document for further discussion between the Centre and the States council members. The present study aims to assess two primary objectives: firstly, to gauge the immediate impact of GST on real estate demand within the residential sectors of Pune city; and secondly, to evaluate the level of awareness among the populace regarding demonetization and its associated benefits