Since the GST bill was implemented in July 2017 many different sectors of the economy have been impacted. The reason for the implementation of GST is to centralize taxation and do away with any other taxes levied and have a common tax rate for all citizens. The GST’s impact on the telecom sector was negative but the GST real estate tax rate proved to be positive.
With the implementation of GST, tax filings are being done online, as the income tax department ruled that anyone earning more than Rs. 5 lakhs per annum has to file taxes online. Here GST emSigner can play a crucial role in making filing your taxes online a smoother and more efficient process
What is an emSigner?
An emSigner is an online-based software, which allows taxpayers to sign, send, track and archive documents.it is done digitally, so that avoids tedious paperwork and saves time. A GST emSigner is crucial while filing for taxes, sending e-invoices as it lets you sign your documents in a systematic and efficient manner. However, it is only supported by select browsers. These are browsers that are deemed fit by the govt of India, they include Chrome, Firefox and Safari. While most GST emSigner are free to use, they may have premium features which can only be availed by subscribing to the service.
What are the Functions and Capabilities of An emSigner
Apart from digital signatures emSigners can:
- Create a Template: It creates a ready to use documents according to business needs.
- Timestamp: Timestamping for important documentation to avoid backdating of the signed document
- Watermarking Documents: To protect the intellectual property of your business.
- Tracker: It helps you keep track of your application status, documents pending etc.
- Secure Cloud Storage: This is offered so that GST emSigner users don’t have to worry about their privacy.this also helps them upload documents from cloud-based services. eg google drive
- Global Compatibility: GST emSigner isn’t confined to the signing of GST documents, it can be used for all kinds of software and platforms. It is designed this way so it can be multi-functional.
- Audit History: It can keep a comprehensive track of all your audits if you require them for legal purposes. An annual audit can help you boost your tax returns if you purchase a property under the current GST real estate rates.
- Customer Support: If you pay the for the services of GST emSigner, you can avail the customer support through phone or email.
What is the Future of GST
Since GST is still a very new tax system it is bound to have flaws. As its dynamic, it is able to tweak and change any rule which is doing more harm than good. Taxpayers should keep up with the latest GST news in order not to suffer a loss. In the last GST bill, certain industries and sectors got lower GST rates from the govt. The hotel industry got its GST rate reduced to 18% from 28%, whereas the GST real estate rate dropped to 5%.
The rate dropped from 12% to 5% for regular homes and from 8% to 1% for affordable homes. Other industries such as manufacturing have also seen a reduction in GST rates to boost the recovery of the economy. The GST slab of 28% will also be reduced, as the government has realised it’s not sustainable.
Were GST Real Estate Rates the Real Winner of the GST Reforms
It is very clear that the GST amendment passed has greatly accelerated the growth of the real estate market in the last two years. The effect of this was;
- A key factor in the initial reluctance to invest was the rising costs of overall construction and manufacturing. Especially cement as it had an initial GST rate of 28%. This saw a steady decline in investors.
- Another important reason for investors losing interest in real estate projects was the delay and sometimes failure to complete the project.
- However, all of this changed with the announcement of the new GST real estate rates. Taxpayers were notified that the rate dropped from 12% to 5% for regular homes and from 8% to 1% for affordable homes. This made real estate a lucrative investment again.
- With the withdrawal of ITC benefits and exemption of Stamp Duty and Registration charges, the general cost of property didn’t experience a significant change in terms of pricing. Hence it became a buyers market after the new GST real estate rates were reduced.
- Even the rental market got a boost due to this as now residential properties for rent were GST free. This lead to a decrease in rental prices, hence encouraging more people to rent properties.
- Although the points above make a solid case for the implementation of GST. There are some glaring shortcomings which cannot be ignored. The process of calculating a persons GST can be complex. This makes it time-consuming.
- The GST real estate tax rate has helped the real estate sector thrive. It is balanced out by the downturn GST has played a role in for certain industries. for the eg the Automobile industry, car manufacturers have been witnessing a slump since 2018. The Indian government was forced to give them a 6-month tax break in September 2019.
In conclusion, it would be correct to say that the real estate sector has come out ahead. Especially when compared certain other industries since the implementation of the GST act in 2017.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.