What can be a better decision than buying a plot in a city like Mumbai? But sometimes you may have to think twice about your choice before purchasing a plot in India’s economic capital because of your budget or sometimes some doubts on the return value. But if you are really interested in buying a plot in Mumbai, then these worries are not logical. That’s because if you notice the growing graphs of the city, you will understand that in the future it will hold the same graph undoubtedly. Explore the best plots for sale in Mumbai and Navi Mumbai below.
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Some crucial points to keep in mind before selecting plots for sale in Mumbai
Deciding the budget and managing the property are in your hand. These are the two major important factors not to avoid. You need some awareness about the rules of the concerned authorities and government. That’s because you need to understand that you cannot limit the investment of real estate up to the original price of your property. Tax and surcharges go hand in hand, and it is a significant amount that is non-negotiable. So you have to pay attention to it.Â
So if you are hunting for exceptional plots for sale in Mumbai, get to know about the relationship of real estate and GST before buying any property.
A new change for Real estate developers
According to the Council of Goods and service tax or GST, the real estate developers can choose the rate of old GST. It will include the benefit of the input tax credit. But if they pick the new GST rate, which has been reduced, they will not get the benefit of the input tax credit.
Abatement rate and GST rate
The GST rate of land is 12%. The abatement rate is 50%. From this 50%, 25% is taken as the rate of the land, and the rest is taken for the goods. In short, the average cost becomes 14%, and it is, of course, higher than before.
Are you looking for an under-construction property?
Sometimes people look for an under-construction property instead of plots for sale in Mumbai. But you have to keep in mind that for this under-construction property, you have to pay service tax as well as VAT. The service tax rate is 4.5 %. But you don’t have to worry about stamp duty because it is not included with GST. Show under-construction properties are more costly than a plot.
Are you looking for ready to move properties?
You will be absolutely relieved from goods and service tax if you choose ready to move properties. You have to get an occupancy certificate.
Do you know about affordable housing?
The Indian government has released a plan called housing for all. It charges no tax, and the best part is it comes under the goods and service tax. So it will not affect this section at all.
Construction materials
GST has a significant impact on the materials of construction too. For example, if you compare it with the previous rate, you will understand that cement cost has been increased by 16% while the price of iron rods has been decreased by 10%. At the same time, the cost of fly ash bricks, as well as sand-lime bricks, has been reduced.
Is GST profitable for Plots for sale in Mumbai?
If you are looking for plots for sale in Mumbai, you will be definitely benefited from GST.
We can see GST’s impact on the materials of interior designing as well. For example, the price of plaster paint wallpapers and wall fittings have been increased a bit. So no matter where you buy plots in Mumbai, you have to abide by all these rules of GST at the time of your investment.
Explore the plots for sale in Mumbai and Navi Mumbai below.