GST implications for running a PG student housing

Introduction

Having a property as an investment is a great idea. But one can greatly benefit from the investment by putting it to appropriate usage. There is a large gap between the demand and supply of best PG options to choose from especially in places like Delhi where a large number of students come from outstation and search for an accommodation during their education period. Not all colleges have hostel facilities and thus students are required to seek for accommodation in PG.

But one might think that against the income from PG, there are a number of hassles in maintaining a PG. This is where start-up ventures such as Placio come into the picture. Wish to know how Placio can turn your property into Placio PG without many hassles, then read on.

What is Placio all about

Placio is a start-up which is funded by the FDI. The main objective of Placio is to resolve the issues which are based on the accommodation of the students who live a PG life off their educational campus. Placio is aimed to redefine the PG marketplace which is set up in order to satisfy the needs as well as the challenges of the student housing industry at large.

How can Placio help property owners

Placio has a great deal of expertise and experience in such areas. By establishing a tie-up with the Placio team, all the different types of hassles which the property owner may come across, are resolved, allowing the owners to get a steady flow of income. Placio takes up the entire responsibilities which come up in running a student accommodation. From the point of marketing of the property of accommodation to handling of the deal, aiding in the moving in the process to the students, as well as managing the operations of its property and its maintenance, all is taken care of by Placio.

Since Placio is a well-known name for the bestPG option, one can be sure of good regular income in the form of rent. But with the gst coming into the picture as a part of reformation of tax, it does have an impact on the income from house rent. How can one benefit from the reformation of tax in the form of gst by the government? Let us find out more.

GST and real estate: the connecting impact

GST is the tax structure that represents the unified as well as simplified taxation policies developed in the country. The GST will add on to the country's attractiveness as an investment option for FDI in the long run. The GST will further aid the country's growth through the ease of doing business as well as creating transparency in the processes. The benefit of GST for the real estate sector in the near future would be great because of the growth of business and commerce industry of the country.

The impact of GST on the real estate sector has mostly been a part of the topic of discussion for any kind of major reform. The impact of the Goods and Services Tax can be seen as no exception. While the GST ensures in more transparency as well as maturity in the sector, the requirements to be fulfilled as per the anti-profiteering law has become a contentious issue for the sector.

The benefit of GST to the end user will be visible majorly in the properties that are made the post the GST implementation. It might be possible that the benefit may not be as significant as per the expectation of the Government.

Conclusion

Placio, which is a student housing start-up, funded by FDI, had been founded in March 2016 by the entrepreneurs Rohit Pateria and Ankush Arora.  Placio has a digital platform which curates the modern living spaces, private rooms, fully-furnished rooms,  as well as personal apartments that are surrounding the localities of the university campuses. If an individual has a property that is built post the GST then he would significantly benefit from the same by letting it out to Placio for student accommodation. It is a win win situation for the house owners in the form of regular income as well as to the student fraternity who get an accommodation to stay in the unorganised market.