Author(s) :   Dr. Anshuman Magar¹, Abhijit Kad², Swapnil Kotwal³, Renuka Kulkarni⁴

Abstract : The implementation of the Goods and Services Tax (GST) in India has transformed the fiscal landscape of various sectors, particularly real estate. This study explores the impact of GST on residential real estate affordability for retail homebuyers. It examines how the transition from a multi-tax regime to a unified GST structure has influenced property prices, developer costs, transparency, and consumer behavior. With current GST rates at 5% (without input tax credit) on under-construction properties and no GST on ready-to-move homes, the sector exhibits a mixed impact on different stakeholders. Using secondary data and policy analysis, the research highlights the benefits of cost rationalization, improved transparency, and simplified taxation. It also reflects on challenges such as limited input tax credits passed on to consumers and fluctuating affordability metrics. The paper concludes that while GST has created a more transparent and competitive environment, its long-term affordability effects depend on policy consistency and developer compliance.

Keywords: GST, Real Estate, Affordability, Retail Homebuyers, Input Tax Credit, Housing Market.

DOI: 10.61161/ijarcsms.v13i6.3

Pages : 15-22

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