REAL CHANGE - Real impact of GST on realty sector

It is expected that with the implementation of GST (Goods and Service Tax), cost of real estate sector will comparatively reduce and, hence, the benefit of the reduced cost must be passed on to the customer.

However, right now, it is difficult to assess the exact benefit to be passed on to existing or new homebuyers in the absence of any calculation mechanism by GST council.

The reasons is, as per the anti-profiteering clause under the GST law, any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit will be passed on to the recipient by way of reduction in prices.

Thus, it is certain that any benefit accrued to the builder will pass on to the customer.But, more clarity on this is still awaited.

In the current scenario, the potential impact of the GST on the Real estate sector shall be better for the economy and for the real estate in particular as it will bring in more transparency and the things shall become crystal clear as instead of many agencies there would be a single nodal agency which can make the whole process streamlined and properly methodical attracting more FDI.

By abolishing multiple taxation system and levying a single consolidated tax, things would be more clear and transparent with no scope of confusion and no tax to be paid at different stages, at different times. Thus, overall, GST would bring in more transparency by providing an audit trail for better control and monitoring of the real estate sector.

The unified tax system will also stop the side effects of multiple taxation, at different stages which, sometimes, can result in inflated prices for the end users. All indirect taxes, like excise duty, service tax, VAT, entry tax, etc, will be subsumed into GST.

However, taxes like custom duty, road tax, property tax and stamp duty will not be subsumed. The rate of GST as recommended by the GST council is 12% (in case there is composite contract of land and construction).

Currently, no indirect taxes like service tax or VAT are charged on the sale of readyto-move-in property.However, the taxes paid on the advance amount will be eligible to be adjusted with the GST levied on such invoices. In outstanding payment no extra tax, like GST would be charged on receipt of money in respect of demand generated in the current system. On the interest on delayed payments, GST will be charged on interest received from the customer, when the interest is being realized. GST will be charged on such receipt of interest.

Suggested projects : Jaypee Greens Wish Town having various ready to move in projects such as Jaypee Kosmos, Jaypee Klassic, Jaypee Kalypso Court, Imperial Court, Pavilion Court etc.

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GST would be Applicable from 1st July 2017 Onward @12% on New Purchase of Real Estate Project

GST would be Applicable from 1st July 2017 Onward @12% on New Purchase of Real Estate Project:-

If you are in planning to purchase a home through fresh booking, it would be going to some costlier due to GST, because where the tax was 4% on new booking of home now it would be going to applicable 12% so it would be application on first purchase.

At the present time the projects are available for resale so the GST would have not any impact on the resale property. Even some projects are ready to move in here in Jaypee Greens Wish Town and at present time available on reasonable prices.

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Jaypee Greens Wish Town The Schedule Plan of Completion is Released

Jaypee Greens Wish Town The Schedule Plan of Completion is Released :-

When some one talk about the purchase of flats in Noida, He thinks twice about the Jaypee Greens Wish Town's projects because of its quality and amenities, but most important point this is possession or delay in possession is the main cause of negativity of the projects. The quality and prices are most favorable for the new home buyers here in Jaypee Greens Wish Town's all projects.

Now the schedule of plan has been announced by Jaypee Greens publicly and it is uploaded on the website so it can be seen by visiting our website : http://www.jaypeewishtownnoida.in/. in more details.

Though, we are uploading it here in this blog in images format.

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Jaypee Wish Town - Premium Apartments are Ready to Move in

Jaypee Wish Town - Premium Apartments are Ready to Move in:

Jaypee Wish Town having, the final set of premium residences on offer at Wish Town’s flagship development in Noida, spread across 1162 acres in Noida, U.P., Jaypee Greens Wish Town is an international award-winning mixed use development that once completed will house luxury residences, 5-star hospitality, convenience and high street retail, here a largest Golf Course is already functional and every project having its individual club houses. The project has been developed in association with illustrious international master planning and architectural firms. The Residences at the Wish Town have been one of India’s most successful recent real estate launches with 75% of the first open and green space.

Jaypee Greens Wish Town having more than 5 thousand apartments / homes ready to move in , our most iconic residential project Jaypee Pavilion Court and Kalypso Court have provided to its end users located right at the heart of the Wish Town sector 128 with a wide choice of spacious 2,3 and 4 bedroom apartments. The residences are designed with premium specifications and offer seamless views of the thoughtfully created The Golf Course, Sports facility and boomerang residences the grand club.

The indicative areas of different configurations are listed below.

The township having 5 sector combined in a form of a gated community in which inter-connected roads, institutes, school, hospital and all types of sports facilities are in functional form.  

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Law for Real Estate Companies

By introducing RERA builders have to provide projects on time. According to following news:

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FESTIVE FERVOUR - NAVARATRA WILL BUMP UP SALES

Developers are expectant of an uptick in property sales during the current festive season of Navaratra, as the government has made it very attractive for homebuyers to enter the market with a number of schemes like subsidy on home loans, tax exemptions, which the developers are complementing with the usual festive freebies and other attractive schemes

Stakeholders in the real estate are upbeat this Navaratra season and say that housing deals will see an upward graph with several factors coming together to entice customers to the market after a prolonged period of slowdown.Apart from the timing--Navaratra being considered one of the most auspicious periods to close any deal, across India--the recent sops that the government handed out to the sector like interest subsidy, tax break, reconfiguring the definition of affordable homes for mid-segment buyers, according infrastructure status to affordable homes, will make affordable housing all the more affordable to a greater proportion of Indians.
Keeping this in mind, a number of top real estate players like Ansal Housing, Tulip Infratech, Wave Group, Gaursons India, Antriksh India, Paramount, Saya, Mahagun, Exotica Housing, Nirala World, among others, have come with unputdownable schemes including free open parking, free club membership, free first transfer, free 1KVA power back-up, complementary LED TVs, refrigerators, sofa sets with centre table, modular kitchen, wardrobes, AC in every room, dining table set and double bed, 8gm gold coin with a free trip to Dubai, 10gm gold coin with free trip to Singapore or Bangkok or Malaysia (for a couple on twin-sharing basis), etc.
Apart from all this, some developers are also offering attractive payment plans like “stamp duty fee waiver“, “pay before demand and get 14% per annum interest“, “price guarantee up to possession“, “free maintenance for one year“, “delayed possession penalty charge“, “no loan processing fee“ and “customized payment plan“.
A S Sivaramakrishnan, head of Residential Services-India at CBRE South Asia Pvt Ltd, says: “The residential real estate market is starting to register a revival, thanks to the government's concerted efforts to bring transparency to the sector and boost consumer confidence. Navaratra season is considered an auspicious time to make large purchase decisions. In the current scenario, homebuyers are also taking other aspects into account before going ahead with their investment plans.“
Dinesh Jain, MD of Exotica Housing, said: “We are offering free home appliances like LED TV, refrigerator, AC in all rooms, modular kitchen, wood work, etc, in every flat which, we hope, will make this Navaratra very memorable for homebuyers. With a limited number of units, we are offering possessions at Greater Noida West and Sector 137 with ready-to-move-in option, completion certificate, and state-of-the-art amenities.“
Exotica Housing is also offering a free gold coin to every new homebuyer in its projects like Exotica Fresco along the Noida Expressway and Exotica Dreamville in Greater Noida West (Noida Extension), this Navaratra. Both projects are ready-to-movein and offering eye-catching architecture.
The group also has customized offerings to suit each buyer's requirement, which is expected to increase their deals. Nirala World is offering 100% discount on stamp duty charges, registration fee, and service tax along with 17 different discounts and freebies to all buyers this Navaratra. Suresh Garg, CMD of Nirala World and secretary of Credai, Western UP, said: “Our project is ready for possession and we have a huge bouquet of offers for the buyers of our ready-to-move-in flats this Navaratra. We are also offering free covered parking, free club membership, and free maintenance for one year. In certain categories we are also offering free split AC, LED TV, wardrobes, and semimodular kitchens.“
Mahagun Group, too, has several freebies for homebuyers this festive season, like sofa set with centre table, modular kitchen, wardrobes, AC in every room, dining table set and double bed at its projects Mahagun Mywoods in Greater Noida West, Mahagun Montage in Crossings Republik, and Mahagun Mantra in Greater Noida West.
Gulshan Homz is offering 10gm (24 carat) gold coin worth Rs 30,000 to buyers who have made 40% of the payment, along with free modular kitchen with chimney and four split ACs on each booking for its 19th floor flats in Gulshan Ikebana in Sector 143, Noida Expressway and Gulshan Bellina in Greater Noida West.
Deepak Kapoor, director of Gulshan Homz and president of Credai, UP Western Zone, says, “We have some attractive offers this season; they are valid from March 1 to April 30.“
Ansal Housing is giving out one reserved parking for free and 10% assured return per annum, for two years, on its projects like Ansal Highland Park in Sector 103 along DwarkaGurgaon Expressway and Ansal Tower in Alwar (Phase II). Saya Group has a customized payment plan along with a waiver on home loan processing fee, first transfer free, pre-laid fiber-to-the-home (FTTH) for broadband internet, modular kitchen with RO, and free wardrobes in all bedrooms in its project Saya Gold Avenue in Indirapuram.
Paramount Group has come up with a unique scheme--12 benefits along with noloan and no-EMI plan till possession--on its projects like Paramount Floraville in Sector 137, Noida Expressway, Paramount Emotions in Greater Noida West, and Paramount Golf Foreste opposite Sector Zeta in Greater Noida.
Ashwani Prakash, executive director of Paramount Group, says: “Our unique `12 benefits scheme' includes no stamp duty, pay before demand and get 14% per annum interest, price guarantee up to possession, free maintenance for one year, delayed possession with penalty charge, free modular kitchen, free open parking (for 2-, 3BHKs, and villas only), free club membership (for studio and suites, 2, 3BHKs, and villas only), free first transfer, free 1KVA power back-up, no loan processing fee, and customized payment plan.“
Antriksh India is offering buyers a refrigerator, LCD TV, washing machine, geyser, 4-burner chullah and microwave on every booking in its project Antriksh Grand View in Sector 150, Noida Expressway during this Navaratra. The offer is valid between March 28 and April 5.
Rakesh Yadav, chairman of Antriksh India, says: “We have received good response from homebuyers and believe this could be the best season for the market. Navaratra is one of the most auspicious festivals for buying or investing in property and we always look forward to it.“
Parveen Jain, CMD of Tulip Infratech, said: “Tulip Infratech is offering 10% discount on cost price this Navaratra. We have always had customers at this time of the year, as this festival is very auspicious for most people and save up to make big purchase during this period.“
Gaurev Kapur, managing director of Gurgaon-based real estate service firm, Golden Bricks, said, “For this Navaratra, we have come up with special offers for customers to strike the right deal. We are giving homebuyers and investors an exclusive and guaranteed opportunity to win a luxury trip to London if they invest with us.“
RG Group is giving out 8gm gold coin along with a free trip to Bangkok and 10gm gold coin along with a free trip to Singapore (for a couple on twin-sharing basis) on every purchase of 2and 3BHK in RG Luxury Homes in Sector 16B, Greater Noida West. The group is offering 5% discount and 5gm gold coin, 8gm gold coin with a free trip to Dubai, and 10gm gold coin with a free trip to Singapore and Malaysia (for a couple on twin-sharing basis) on the purchase of 1-, 2-, and 3BHK on RG Residency in Sector 120, Noida.

Source: TOI dated 1st April 2017

Suggested projects are Jaypee Greens Wish Town, Jaypee Kalypso Court, Imperial Court,

Jaypee Greens Greater Noida.

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Jaypee Kosmos A project of Jaypee Greens Wish Town on Noida Greater Noida Expressway

Jaypee Kosmos A project of Jaypee Greens Wish Town on Noida Greater Noida Expressway:

Radiating out from Delhi into the National Capital Region are two expressways. The one in the east runs 22 km through Noida and Greater Noida. The other in the south stretches for 18 km between Dwarka and Kherki Daula. On either side of both these expressways are vast expanses that have been opened up for development by realtors.


While the southern dream has been soured by the inability of the authorities to provide basic amenities like water and sewage in the proposed residential zones, the eastern hub enjoys excellent infra structure, but completion of housing projects there has been hampered by unforeseen reasons.


Along the Noida Expressway that links the capital to Greater Noida — and from there via Yamuna Expressway to Agra — the authorities acquired huge tracts from farmers and auctioned them to realty companies after putting into place reliable water, sewage, electricity and road systems. The delays in implementing the housing projects there are, therefore, clearly due to the failure of realtors to raise finances as well as legal and other hurdles.

The Unitech project called Grande was launched in 2007 across 350 acres. After eight years, it is yet to be completed.Launched at a premium pricing of Rs 7,000 per sq ft, the houses were to be built around an 18-hole golf course. But paucity of funds has slowed down the construction. As for the golf course, all that Unitech has come up with is a sorrier 9-hole course.


While funds are a problem for real estate companies, they are ironically unable to collect more money because the incomplete projects have led to a fall in prices. At Jaypee's 800-acre Jaypee Greens Wish Town, for instance, where construction started in 2008, prices have remained stagnant in the Rs 4,000-10,000 range.


Jaypee Greens launched around 35,000 housing units along with a hospital, school and two golf courses -one 18-hole and the other a 9-hole one. The golf courses are ready and the group has started giving possession. A company spokesperson claimed by February 2016, around 5,400 buyers will get possession and by December, another 7,000 apartments will be handed over. He said the Wish Town project will be completed by 2018.


Similarly , the projects undertaken by 3C such as Boulevard, Panache and Zing are running behind schedule, as are many others initiated by other companies. The builder claimed that one of the biggest factors for the delay was the agitation for higher compensation by farmers whose land had been acquired. As Anil Sharma, CMD of Amrapali, pointed out, a number of his company's projects on the Noida Expressway was affected by protesting farmers who descended on the roads several times between 2011 and 2014. The air of uncertainty caused by these protests kept potential buyers away.


There was also the October 2013 judgment of the National Green Tribunal banning construction within a 10-km radius of the Okhla Bird Sanctuary. While the ban was finally lifted in August 2015, the interregnum saw no possibility of the completion certificates being awarded and, therefore, no possession being given by the builders despite the construction of thousands of apartments being completed.

In Jaypee Kosmos apartments are ready to move in now.

Source: Timesofindia 

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