GST to Make Shifting to A New Home Expensive
Jul 20, 2017 Real Estate News
Buying a property will certainly get cheaper under GST as the taxes levied on the property will be 18 percent across the country. Before the taxes were up to 25 percent. The developers will also get to enjoy the input tax credit and will be paying only 12 percent as the tax.
However, the same cannot be said for the shifting of the house. If you have already bought the house are looking forward to shifting, GST will make it costlier for you.
1. Maintenance charges to increase:
The maintenance charges of the properties will go up from July 1. The owners of the apartments used to pay 15.5 percent as the maintenance charges before, not they will have to pay 18 percent for the same. Housing societies that earn more than 20 lakhs annually as maintenance charges will be charged the same. Maintenance charges do not include utility bills like electricity, water charges or property tax and stamp duty.
2. Decking up your home will be costlier:
In case you are planning to hire an interior designer to make your home beautiful, you will be paying an additional 3 percent tax more to the GST. The service tax on interiors used to be 15 percent but after GST they will be 18 percent.
3. Home appliances to cost more:
The basic home appliances like TV, AC, refrigerator etc will cost more under the new GST regime. The manufacturers of these items will pay 4 percent more tax now.
4. Burden of your kitchen to go up:
The finances of your kitchen are going to go higher. The tax on tea, coffee and other beverages will be five percent as it used to be between 4-9 percent earlier. The tax on the aerated drinks will be 28 percent under GST.
5. Pay more to stay connected:
The tax on the services like DTH, Wifi etc will go higher as well. Under the new tax regime, it will be a bit expensive for the consumers to stay connected with the world and pay more for the services.
6. Pay more for transactions:
Be ready to pay more for the ATM withdrawals or swiping of your cards. If you are an online shopper, be ready to pay more for the transaction. Initially, the online retailers did not have to pay the tax but now a tax of 1 percent will be levied, which will be passed onto the buyer.
While few things are getting cheaper with GST, there is certain stuff that will cost more than they did before under GST.
However, the same cannot be said for the shifting of the house. If you have already bought the house are looking forward to shifting, GST will make it costlier for you.
1. Maintenance charges to increase:
The maintenance charges of the properties will go up from July 1. The owners of the apartments used to pay 15.5 percent as the maintenance charges before, not they will have to pay 18 percent for the same. Housing societies that earn more than 20 lakhs annually as maintenance charges will be charged the same. Maintenance charges do not include utility bills like electricity, water charges or property tax and stamp duty.
2. Decking up your home will be costlier:
In case you are planning to hire an interior designer to make your home beautiful, you will be paying an additional 3 percent tax more to the GST. The service tax on interiors used to be 15 percent but after GST they will be 18 percent.
3. Home appliances to cost more:
The basic home appliances like TV, AC, refrigerator etc will cost more under the new GST regime. The manufacturers of these items will pay 4 percent more tax now.
4. Burden of your kitchen to go up:
The finances of your kitchen are going to go higher. The tax on tea, coffee and other beverages will be five percent as it used to be between 4-9 percent earlier. The tax on the aerated drinks will be 28 percent under GST.
5. Pay more to stay connected:
The tax on the services like DTH, Wifi etc will go higher as well. Under the new tax regime, it will be a bit expensive for the consumers to stay connected with the world and pay more for the services.
6. Pay more for transactions:
Be ready to pay more for the ATM withdrawals or swiping of your cards. If you are an online shopper, be ready to pay more for the transaction. Initially, the online retailers did not have to pay the tax but now a tax of 1 percent will be levied, which will be passed onto the buyer.
While few things are getting cheaper with GST, there is certain stuff that will cost more than they did before under GST.
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