Experts' Take
Kunal Banerji, Director (Marketing), Shri Infratech
Besides its immediate effect on property prices impacting developers and buyers, the order has potential to create confusion and increase litigations. The states who are severely under pressure to increase revenue, can decide to levy VAT. This will open a Pandora’s box for litigation as not all states levy VAT and therefore purchase agreements do not have provisions for it. The best possible scenario will be to implement it prospectively after a gap of six months so that developers are prepared.
Kunal Banerji, Director (Marketing), Shri Infratech
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