Mr. Kannan Krishnan, Managing Director, JAKSON Green, said, “The GST Council’s first meeting after a year-long hiatus presents a significant opportunity to advance long-pending industry reforms, which is to balance and streamline uniformity in the GST rates for the Renewable Energy Industry. It will be instrumental in accelerating the broader financial reform agenda, particularly through a review of the Input Tax Credit (ITC) framework aimed at removing the legal, procedural and administrative bottlenecks that impede the seamless flow of credit across the value chain.
The most effective long-term solution would be the adoption of a single-rate GST structure. In the absence of such a framework, several VAT jurisdictions (global markets) allow businesses to claim refunds for accumulated ITC at the end of a tax period. While it may be unrealistic to expect the GST Council to implement such a comprehensive reform immediately, its strong track record of responding to pressing industry concerns suggests that it can take an important first step. This could be achieved by expanding the scope of Inverted Duty Structure (IDS) refunds to include capital goods and services, at least on a partial basis, supported by a clear roadmap for gradual expansion in the future. Such a measure would improve working capital efficiency, reduce the tax cost embedded in production, and strengthen the competitiveness of Indian businesses, directly supporting the objectives of Viksit Bharat 2047.”
Yash Garg, Director, M3M Noida, said, “The proposed next phase of GST reforms, with a greater emphasis on faster refunds, smoother input tax credit mechanisms and simplified compliance, is a positive step towards improving the overall ease of doing business. For the real estate sector, greater certainty and timely resolution of tax credits can help reduce working-capital blockages and enable developers to plan project execution and investments more efficiently. A technology-driven and transparent GST framework, with fewer instances of repetitive scrutiny, would also bring greater predictability to long-term project planning. As the sector continues to scale, such reforms can strengthen operational efficiency and contribute to a more stable investment environment.”
The GST announcement will be important from the perspective of improving cost efficiency across the real estate value chain. Greater clarity on input taxation, credit mechanisms and project-level applicability can help reduce cost uncertainties and enable developers to plan investments with greater confidence. This becomes particularly relevant as the sector moves towards larger, more professionally managed developments with higher construction and infrastructure requirements. A streamlined GST framework can also reduce compliance complexities and improve efficiency across the supply chain. Ultimately, a predictable tax regime will support healthier project economics, encourage fresh investment and contribute to the sector’s continued formalisation. – Anil Godara, Managing Director, J Estates
The upcoming GST announcement is expected to bring greater clarity and stability to the real estate sector, particularly around taxation for homebuyers and ongoing projects. A rationalised and simplified GST structure, if announced, could improve purchase sentiment by making the overall cost of homeownership more predictable. For the residential market, especially the premium segments, policy clarity can play an important role in sustaining demand and supporting new investments. We also hope the announcement addresses practical implementation concerns faced by developers and buyers, while maintaining transparency across the value chain. A stable tax framework would ultimately strengthen confidence and contribute to the sector’s long-term growth. – Parvinder Singh, CEO, Trident Realty