The Goods and Service Tax (GST) has revolutionized the Indian tax system. Experts from Imperia Structures believe that GST in addition to the Real Estate Regulation Act (RERA), will perfect the real estate sector, which has been suffering a lot due to a corrupt few. However, following GST isn’t easy. Imperia Structures bring you five must-dos that will ease your transition in a GST-compliant system.
Real estate projects often have various disbursements that include external developmental charges, internal developmental charges, location charges, base sales expenses, etc. All of these need to be decided based on the GST system. The same applies to VAT and service tax, they need to be translated into GST as well.
Imperia Structures advises that the paperwork needs to be detailed and accurate. Developers, brokers, contractors and suppliers need to ensure timely filing of the GST forms. Everyone needs to improve their compliance system through digitization so that e-filling is possible.
If people in your real estate system are GST-illiterate, teach them. They will benefit from the knowledge and it will help you a lot. The government has promised to be lenient for the first few months as it will be easier for developers to learn what goes where. Developers won’t have to fill in a detailed return, only a summary will do the trick.
Do not anti-profiteer
If you’re caught asking your customers to pay a higher tax rate in his/her installments, you’ll have to face the wrath of Section 71 of the GST Act. All the third party vulder-customer agreements and contracts have to be GST-compatible.
Paperwork is annoying and it can cause a lot of problems. According to experts from Imperia Structures, developers and contractors need to update their entire IT departments for GST-compliance. Invoices should include GSTIN of the supplier, name, address, recipient’s name and the issuance date.
Do you want to add another point to this list? Let Imperia Structures know!