Construction companies say that if you invest Rs 1 crore and buy a flat, you might have to pay Rs 35–40 lakh as taxes collected by the central and state governments. It is said that due to this factor, flats are becoming inaccessible to common and middle-class people. Experts also agree that people living in metro cities will be able to live happily in their own homes only when the percentage of these taxes is reduced.
Although the governments are saying that they will adopt a unified tax system in the country, they have not materialised it yet. About 250 industries work together to build a house. Various types of taxes are imposed on so many industries in this order. The main one is GST. Each type of GST is levied on each item. Developers used to get input credit on GST. Now it has also been removed. Home buyers have to pay 5% GST on the flat they buy. Apart from that, stamp duty and registration charges have to be paid. These charges vary from state to state. That is, even after the central and state governments have collected various taxes when a house is built, buyers still have to pay 5 percent GST, seven and a half percent stamp duty, and registration charges. If you buy a double-bedroom flat, you will have to pay Rs. 5 lakh GST on it as well. In addition, stamp duty and registration charges have to be paid. This is the reason why most people are not able to realise their dream of owning a house. Therefore, construction experts want to reconsider this matter and remove the double tax system.
