Naresh Dhoundiyal, a prominent figure in the real estate sector, believes that the new Goods and Services Tax (GST) regime is a major step forward in simplifying taxes. Before GST, businesses had to navigate a complex web of taxes levied by both the central and state governments, leading to confusion and increased costs. With GST, India has moved towards a single, unified tax system, making it easier for businesses to comply with regulations. This simplification is particularly beneficial for the real estate sector. Previously, builders had to deal with multiple taxes like VAT and service tax, adding complexity to their operations. GST streamlines this process, making it more transparent and efficient. This allows companies to manage their projects effectively and offer fairer prices to customers.
Mr. Dhoundiyal sees GST as a significant boost for the real estate market. Lower tax costs empower developers to offer more affordable property prices, attracting a larger pool of buyers. This translates into increased sales and overall growth in the sector. He also emphasizes that the clear and predictable tax structure under GST encourages greater investment in real estate, making India a more attractive destination for investors. Additionally, GST eliminates the “tax on tax” problem that previously plagued the industry. In the past, businesses had to pay taxes on the materials used for construction, increasing the overall cost of homes. With GST’s input tax credit system, builders can now reclaim a portion of the tax paid on materials, reducing costs and making projects more affordable.
Naresh Dhoundiyal believes that GST’s positive impact extends beyond the real estate sector, benefiting the Indian economy as a whole. The creation of a single tax system simplifies business operations in India, making it easier to attract foreign investment. This influx of capital contributes to job creation and overall economic growth. Mr. Dhoundiyal points out that the expansion of the tax base under GST leads to increased government revenue, allowing for greater funding of infrastructure projects and social programs. This further contributes to economic growth and societal well-being.
Overall, Naresh Dhoundiyal is optimistic about the new GST regime. He believes that it will drive growth and efficiency not just in the real estate sector, but across the Indian economy. By simplifying the tax system and encouraging investment, GST benefits both consumers and businesses, ultimately supporting India’s goal of a stronger and more vibrant economy.
