AN IMPACT STUDY OF GST ON THE INDIAN CONSTRUCTION INDUSTRY From Freedom to Carve the Aesthetic Ellora to the Wealth-Based Edifices

Abstract

The construction industry's worth and the real-estate sector's significance to the economy are challenging but crucial. The construction industry is vital to the nation's economy, and its importance must be emphasized to receive top billing in legislative priorities. The construction business is subject to the remarkable impacts of Goods & Services Tax on its operations and is assigned to the random sector due to the frequent use of alternatives to deal with the tax hike movements. This research paper is an attempt to analyse in greater depth the impact of the “GST” on the real estate sector and construction industry, as the GST changes were enacted for the sole goal of making housing accessible for everyone. Various provisions have changed in the past years. In the literature review, it is found that studies conducted on the effects of “Goods and Services Tax” on real estate and construction have a gap in having a proper comparative study. This study will compare the impact of the old and new GST regimes on real estate and construction. By eliminating disparities in taxation between different Indian states and creating a unified tax structure across the country, experts predict that the “Goods and Services Tax” (GST) would increase revenue and accelerate economic growth in the subcontinent. By broadening the tax base & limiting deductions and credits, GST reduces the effective tax rate and more fairly taxes both manufactured goods and services. This paper has attempted to highlight the impact of the hardship on compliance and revenue generation in the post-GST phase.