Impact Of GST On Construction Industry
By: Mantha, Nagaraj
.
Contributor(s): Maggon, Mohita.
Publisher: Pune NICMAR 2019Edition: Vol.34(1), Jan-Mar.Description: 62-71p.Subject(s): Construction Engineering and Management (CEM)Online resources: Click here
In:
NICMAR Journal of construction managementSummary: In its form ofbeing a single indirect tax that covers all goods and services, the Goods and Services Tax (GST) may be termed as one ofthe most radical tax reform which is likely to have a long standing and a remarkable effect on the Indian economy. The GST, once fully implemented in two or three years' time is expected to eliminate the conflicting and cascading tax structures that are prevalent. There is a general ill-feeling that these conflicting tax structures have confounded the entire industrial sector in the past. The GST may impact the construction industry in different terms. The construction material is likely to become dearer. Due to land prices being less, the affordable housing sector may become cheaper. However,the other sectoral components ofthe construction space like the real estate and commercial sectors are expected to get costlier. In a way high value realty may feel the pinch. As minimal change is only visualized in the overall gross cost ofconstruction, hence the impact on real estate developers and builders may not be significant. The builders and developers can offset the expected increase in the construction costs by virtue ofinput tax credits on various items homogeneously viz. GST collected on consultant's bill or that on a bag ofcement. As regards to the infrastructure sector - Goods and services for infrastructure projects enjoy a large number ofconcessions and exemptions under Central and State laws, since the sector is ofnational importance. Yet, the multiplicity oftaxes and general construct ofcontracts give the infrastructure sector a heightened degree ofcomplexity from the perspective ofindirect taxes. The key issue for this sector is the continuity ofcurrent concessions and exemptions under GST and its plausible impact on credit chains and costing. In this paper an attempt is made to elucidate the impact ofGST on various sectoral components ofthe construction space
| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
|---|---|---|---|---|---|---|
Articles Abstract Database
|
School of Engineering & Technology (PG) Archieval Section | Not for loan | 2020373 |
In its form ofbeing a single indirect tax that covers all goods and services, the Goods and Services Tax (GST) may be termed as one ofthe most radical tax reform which is likely to have a long standing and a remarkable effect on the Indian economy. The GST, once fully implemented in two or three years' time is expected to eliminate the conflicting and cascading tax structures that are prevalent. There is a general ill-feeling that these conflicting tax structures have confounded the entire industrial sector in the past. The GST may impact the construction industry in different terms. The construction material is likely to become dearer. Due to land prices being less, the affordable housing sector may become cheaper. However,the other sectoral components ofthe construction space like the real estate and commercial sectors are expected to get costlier. In a way high value realty may feel the pinch. As minimal change is only visualized in the overall gross cost ofconstruction, hence the impact on real estate developers and builders may not be significant. The builders and developers can offset the expected increase in the construction costs by virtue ofinput tax credits on various items homogeneously viz. GST collected on consultant's bill or that on a bag ofcement. As regards to the infrastructure sector - Goods and services for infrastructure projects enjoy a large number ofconcessions and exemptions under Central and State laws, since the sector is ofnational importance. Yet, the multiplicity oftaxes and general construct ofcontracts give the infrastructure sector a heightened degree ofcomplexity from the perspective ofindirect taxes. The key issue for this sector is the continuity ofcurrent concessions and exemptions under GST and its plausible impact on credit chains and costing. In this paper an attempt is made to elucidate the impact ofGST on various sectoral components ofthe construction space
Click on an image to view it in the image viewer
There are no comments for this item.