“The Indian Economy underwent a major change with the introduction of two laws in the year 2017 – GST and RERA” said CA Sandeep Jotwani, Past Chairman of Nagpur Branch of ICAI while speaking as a Chief Guest on a Half Day Seminar on GST on real estate and recent developments in RERA organized by Nagpur Branch of ICAI.
CA Jotwani pointed out that the business community while passing through rigors of demonetization; for builders RERA was introduced and immediately thereafter on July 01, 2017 GST Act was made applicable.
Many thought that date of the respective Act’s would be extended but these Acts were implemented on the same date as announced. He pointed that whenever a new Act or a new Law is implemented, it is the Chartered Accountant community who is looked upon to understand, interpret and get the provisions and procedures complied. He proudly stated that the Chartered Accountants have not only learned and interpreted but also explained the law to trade, business community, and multiple bodies as well as to the general public. Nowadays for a CA only being an expert in either Income tax or GST is not enough; a reasonable understanding of all the other laws and Acts is equally important to provide quality consultancy to the clients.
He further pointed out that the time has come when CA as professionals should get ready for artificial intelligence taking over their routine jobs where major compliances will be performed by the software itself, and therefore they need to prepare themselves for it and specialize in Audit and providing consultancy apart from the routine work.
Mr. Jotwani explained that even today 47% of the Indian investment remains parked in the Real Estate in spite of this sector facing so many challenges and therefore introduction of RERA was very important. With introduction of RERA, big opportunity as well as responsibility is given in the hands of CA’s. He listed out the multiple new opportunities for CAs which includes providing consultancy to an Investor in Real Estate business, assisting client in filing complaint if any violation of RERA rules takes place, working as a Management consultant with the builders to manage compliances of RERA, conducting a Due Diligence Audit and finally Certifications and Audits.
He added that the government is working very hard to push up the economy and the real estate sector with the reduction in rates of GST for real estate sector. It is pertinent that ultimate benefit of the reduction in tax rate should be passed on to the ultimate consumer. He pointed that although GST rates have been reduced to 1% or 5% but the tax rates on inputs still continues to be 5%, 12% 18% and 28% for Builders of which ITC is not available which forms part of Cost of Builder.
CA Jotwani suggested for all the Chartered Accountants to foresee the future changes in the economy as well as their professional area so that they prepare themselves beforehand to face the upcoming challenges.
“The Chartered Accountant Community is being looked upon for giving proper advice by the real estate industry”, said CA Suren Duragkar, Chairman, Nagpur Branch of ICAI. The changes in law and new notifications and circulars in the laws like RERA and GST are very frequent and to update members regarding the changes Nagpur Branch is continuously organizing seminars for the benefit of members. He further informed that Nagpur Branch of ICAI has organized multiple seminars and workshops to propagate both the Acts with Trade and Industry Associations.
CA Vishal Poddar from Nashik explained very lucidly provisions regarding GST on Builders & real estate. He explained the new scheme of GST taxation for Builders wherein rates of 1% and 5% are stipulated. Builders are required to file their response in Form IV by stipulated date to continue with old rates of GST taxation for builders. Mr. Poddar also explained in detail issues regarding credit reversal of ITC in case completion certificate has been obtained by builder.
CA Chaitra Salankar from Nagpur gave a presentation on recent developments in RERA. Chaitra mentioned that a lot of responsibility has been affixed on the Builder community to comply properly with provisions of RERA. He explained penal provisions related to non compliance with RERA and shared practical judicial pronouncements under RERA for the benefit of members.
The programme was coordinated by CA Saket Bagdia, Secretary of Nagpur Branch. Prominently present on the occasion were CA Kirit Kalyani, Vice Chairman, CA Jitendra Saglani, Treasurer, CA Harish Rangwani, Study Circle Chairman, CA Julfesh Shah, CA Satish Sarda, CA Hemant Rajandekar and a large number of Chartered Accountants.