Real estate transactions in India are taxed under a complex system that is being regulated by many legislation, including the RERA Act, the Goods and Services Tax (GST) Act, and State-specific stamp duty regulations. Notwithstanding different laws, there are still notable gaps that enable tax related issues relating to property such like inconsistent GST application on under-construction properties, and decentralised stamp duty systems etc. The paper assesses current legislative initiatives to improve responsibility and openness by critically examining these structural defects.

The paper tries to investigate and suggest best practices and proposes focused changes including harmonised stamp duty rates and simplified GST procedures. By tackling these issues, the study argues for a taxation system that supports sustainable development in the Indian real estate market by means of equity, efficiency, and revenue optimisation.

Introduction:
Economic growth, industrialisation, commercialisation, and infrastructure building have driven a boom in the real estate market. This has stabilised property worth all throughout the nation by sharply rising it. Given limited land availability, demand rises will inevitably drive prices upward, thus we can state that real estate is an important part of the Indian economy[1].

It helps boost the country's GDP and creates many jobs. Taxing real estate transactions in India is important, but it is difficult and complex. It is governed by several laws, including the RERA ACT[2], the Goods and Services Tax (GST) Act of 2017, and different stamp duty and registration fees rules in each state, making real estate taxation a bit it complicated and difficult to navigate. These overlapping tax's sometimes transfer over burden to property owners, particularly those joining the market for the first time, leading to an unexpected financial responsibilities and administrative problems.

The main issue is the complicated and decentralised form of the tax system. For example, the GST is handled differently for some assets, especially for projects that are still being built, leading to confusion about tax payments. The different stamp tax rates in each state make the situation worse. These differences lead to varying costs and create chances of over burden over the persons who wants to invest in real estate, which might discourage people to invest in this sector.

Thus, home buyers are reluctant cause they tend to face higher financial burdens and they need to deal with complicated taxes and potential issues. Middle-class families and first-time buyers, who are already facing high costs of buying a home, are unfairly burdened by this complicated tax system. Conflicting tax rules and complicated rules for following the lead to higher costs and make it harder for people to buy things and participate in the market. This is particularly worrying in an industry that is important not only for individuals to build wealth but also for overall economic security and growth. The current tax rules cause financial instability, which lowers customer trust and long-term investments, affecting the real estate business.

In instances like in cities such as Bangalore, Mumbai, and Pune, the Indian stamp duty and property tax system is frequently criticised for its complexity and financial burden on property purchasers. Although these taxes are necessary for producing government income and financing metropolitan development, the high rates between 3% and 7% for stamp duty alone significantly raise the cost of house ownership. Furthermore adding to the financial burden is the 1% registration fee, which makes real estate purchases more costly than first seems.

The lack of consistency across several cities adds even another level of uncertainty as buyers must negotiate multiple tax systems like the Unit Area Value system[3] in Bangalore and Pune and the Capital Value System in Mumbai. This disparity sometimes results in inefficiencies and gaps that may be taken advantage of, therefore helping certain superior groups while burdening the typical house buyer.

Furthermore, insufficient transparency exists about how these money are used for urban development, which makes many taxpayers wonder if they get equal returns. Mumbai's taxation system is further complicated by the inclusion of other taxes like education cess and tree cess, which gives the impression of more revenue-maximizing method than equitable contribution towards city development. The government should investigate alternate, more fair taxation schemes that relieve the financial burden on homeowners while guaranteeing enough income for infrastructure development instead of charging purchasers large upfront taxes.

The paper examines how current tax laws unfairly impact people buying property in India, highlighting important issues in real estate taxation. The study looks as to if there are any best practices to suggest specific changes, like standardising stamp duty rates, making GST processes easier. These reforms aim to lower costs for homebuyers and create a fairer and clearer tax system. This study says that changing the tax system is not only about making things easier to manage but is also an important first step to create a fairer and more sustainable real estate market in India. By addressing these problems directly, lawmakers can create an environment that supports individual customers and improves the overall economy.

Research Problem:

1. To analyse and examine the particular tax-related legal obstacles impeding the expansion and availability of reasonably priced housing in India.
2. To analyse and stream line the GST taxation in real estate transaction to reduce the burden of over taxation over the citizen.

Research Question:
A complicated and confused tax structure presents major obstacles for the Indian real estate industry Comprising the RERA Act, GST Act, and state-specific stamp duty rules, this system generates inefficiencies, promotes tax avoidance, and unfairly affects homebuyers, especially those looking for reasonably priced accommodation.

This study looks at the particular structural and legislative obstacles within the present real estate tax system that hinder openness and affordability. It looks at whether the current tax laws produces arbitrary categories that can violate Article 14 of the Indian Constitution equality before the law. At last, it evaluates the possible suggestions and methods in correcting the shortcomings of present law and streamlining real estate taxes. Especially in the taxation of real estate sector, this study seeks to pinpoint certain areas of change to produce a more fair, efficient, and open tax structure supporting sustainable development in the Indian real estate market.

• Whether there are any particular tax legal barriers for affordable housing in real estate?
• Whether under the purview of the GST Act, there are any legal difficulties in determining whether real estate transactions are a burden or a relief in real estate?
• Whether tax laws in real estate create unequal categories of transactions between states, thereby violating Article 14 (equality before law)?
• Whether there are any methods that India can adapt to reduce inadequacies in tax legislation from the perspective of real estate?

Research Methodology:
This paper is completely based on the secondary method of research approach where the data used are collected and analysed from the legal documents w.r.t the Taxation in Real Estate Implications and suggestion with respect to India and other related document and other legislative texts and existing literature from a selected website such like Jstor, Hein online etc of Taxation in Real Estate. The study is conducted such that it provides a comprehensive understanding of taxes and its consequences on real estate and associated challenges and the efficiency of taxes in creating efficient real estate transaction to lessen the inequalities.

Literature Review:

1. Fiscal and Distributional Implications of Property Tax Reforms in Indian Cities. Economic and Political Weekly, 41(29), 3209–3220[4] Written by Somik V. Lall, & Deichmann, U states that Although a major municipal source of income, property taxes are sometimes neglected for funding local projects. The fiscal and distributive effects of assessment changes in Bangalore and Pune, India, are investigated in this research. Although the results are particular to these two cities, most urban local governments share the reform initiatives and underlying issues. Reforms that bring assessment of the property tax base closer to market values have major beneficial effects on revenue generating and have no negative effects in terms of the tax burden suffered by the poor. To make these changes sustainable, structural problems like better valuation, rising buoyancy of the tax, and cultivating taxpayer confidence have to be addressed.
    

2. Impact Of Rera And Gst On The Real Estate Sector In India

   University of Petroleum and Energy Studies written by Anant Kumar Anand & Sujata Kumari states that India's real estate market has been much changed by the Goods and Services Tax (GST) and Real Estate Regulation Act (RERA). While the GST seeks to protect buyer interests and advance openness, the RERA seeks to solve building sector fraud. The RERA, which acknowledges the "disorganised sector," has, however, generated uncertainty in the building industry. The GST mechanism lets developers get free input tax credits and covers building services. With possible effects on worldwide financial flows, business strategies, and building prices, the Indian real estate industry is changing.
    
3. India's Taxation Regime: Perspectives on the Proposed Changes, 23 NAT'l L. SCH. INDIA REV. 28 (2012) written by Y. Shiva Santosh Kumar states that India's Direct Tax Code (DTC) has been criticised for its lack of clarity and best practices as well as for its ambiguity, too much discretion, and possible corruption. The UK Tax Law Review committee attacked the UK model for not addressing taxpayer rights and for concentrating excessively on non-statutory recommendations. As anti-avoidance strategies, the DTC proposed clauses for controlled financial companies (CFCs) and a notion of "place of effective management of the company". The DTC proposed modifications to asset transfer by non-residents, the Advanced Pricing Agreement (APA), J, Minimum Alternate Tax (MAT), and the taxation of e-commerce, software, and the constitutional view of GST's impact on inter-state relations. The Rajasthan High Court decided that shopkeepers might be subject to compensation taxes for local development projects.
    
4. GST & Evolution of Tax System in India, IRA-Int'l J. Mgmt. & Soc. Sci., Vol. 7, Issue 1, at 65-72 (2017), available at DOI:10.21013/jmss.v7.n1.p8 written by Jasmine V.M. states that GST was set to be applied from July 1, 2017, the Goods and Service Tax (GST) is a new tax reform enacted in India. Aiming to guarantee consistency in tax collecting and prevent cascade consequences, this complete tax collecting system integrates direct and indirect taxes. The Indian tax system has a lengthy history going back to British India and ancient Egypt. With VAT instituted as an indirect value added tax in 2005, the central board of revenue, CBDT, and CBEC handle taxes in India. Designed by an authorised committee under Sh. Asim Das Gupta, the GST concept first presented itself in 2006. With tax rates of 5%, 12%, 18% and 28%, the GST threshold is established at 10 lakh for northeast hill states and 20 lakhs for other states. The GST system lets companies write off against the tax on their bought items from the producer. The GST Council will be the top body in policy making; taxes will be paid based on destination concept; imports will be liable to GST while exports would be zero-rated. Proposed for the supply of commodities is an extra tax of up to 1%, with money sent to the origin state.
    
5. The Property Tax in a New Environment: Lessons from International Tax Reform Efforts written by Joan Youngman and Jane Malme state that land and building taxes use several bases: formulaic methods, yearly value, initial purchase price, capital value, non-value metrics such area base or parcel taxes. Still, political opposition to tax rates calling for the sale or mortgage of family farms, open space, and senior people' houses remains strong. Area-based taxes have long been utilised in transitional nations; yet, absence of well-developed property markets and land registration systems limits the adoption of value-based taxes. Political and administrative feasibility still causes questions even with possible advantages. Value-based taxes are developed in great part by valuation experts; yet, public understanding and openness help to foster responsibility and accountability. Based on objective physical traits, self-assessment systems may be a fair administrative solution for taxes; yet, this method might result in intentional understatement of value and political and administrative challenges.

Analysis:

History Of Real Estate Taxation:

Reflecting the rich and varied historical development of India, real estate has been integral in Indian society for centuries. Traditionally regarded as one of the most valuable assets, property has been held by wealthy people, rich landlords, and the governing elite mostly. Various governing dynasties and colonial administrations have helped to determine the major changes in real estate's governance and taxes throughout time.[5]

In Ancient India, Land income collecting during the Vijayanagar Empire was a disciplined administrative procedure. Athanave was the governmental agency in charge of collecting land taxes. Production tax was fixed at one-sixth of the total produce, paid either in money or crops; taxes were charged depending on the soil fertility of the farms. This arrangement guaranteed a consistent income for the empire even as it acknowledged differences in agricultural output.

Land revenue became more orderly and main source of governmental income during the Mughal Empire. Introduced as a tax paid on properties purchased at the time of purchase, Ghari tax added yet more weight to land transactions. Furthermore imposed was Khiraj, a tax on the gross agricultural production of lands, therefore strengthening the tax system in the real estate industry.

The British colonial government drastically changed India's land revenue structure, therefore changing property ownership and taxes. Many tax systems from Zamindari System was Introduced in 1793 by Lord Cornwallis under the Permanent Settlement Act, this system made landlords i.e., zamindars the owners of large estates and accountable for collecting land income.

The arrangement pushed farmers into tenant status and resulted in a few individuals having great land concentration. Following the Ryotwari System Thomas Munro introduced in certain areas of South India, this system let peasants (ryots) directly control their property but mandated they pay taxes straight to the British government. By means of this, we can see that British-era taxes severely burdened Indian farmers and landowners, often resulting in widespread debt and land expropriation owing to the impossibility to pay hefty taxes. Many of India's contemporary property taxation rules originated in the implementation of stamp duty and registration fees[6] during this era.

Driven by urbanisation, economic development, and legislative reforms, India's real estate market changed significantly after the 1947 Indian freedom. Different rules and policies were adopted over time to simplify the industry and defend consumer rights. The Real Estate (Regulation and Development) Act, 2016[7] (RERA) was among the most important changes implemented. This historic law created a disciplined legal framework meant for:

• Defending the rights of house buyers.
• Improving real estate transaction openness.
• Making developers accountable for delivery and completion of projects.

As seen in the above the property taxes have long been a feature of Indian history, and they still influence real estate sales now. But it is to be noted that The Real Estate (Regulation and Development) Act, 2016 failed to clearly address the taxation aspects[8] as to what; which and process all taxes can be levied on the property transaction. There are other few important legislation and tax policies which are applicable for taxation on to the real estate transactions;

Stamp Duty[9] & Registration Charges[10] which is levied by state governments at different rates is acting as a contribute to the total cost of acquiring property. Along to this the Goods and Services Tax (GST)[11] which is designed for under-construction homes, this raises buyer financial responsibilities. The property owners along with GST are being also subjected to Income Tax[12] i.e., the capital gains tax covers income from property transactions. Plus apart from the above the owners and purchasers are also subjected to property tax which is levied yearly by local municipal authorities for upkeep of public infrastructure.

Thus, in India we can see property tax causing a bit higher burden on common people, thus we need to alter the existing tax problems to make a more effective economy and real estate sector.

Tax Legal Barriers For Affordable Housing In Real Estates Due To Stamp Act; Registration Fee; Gst; Service Gst Etc:

The Goods and Services Tax (GST) introduced in India parliament and is enacted as on July 1, 2017, This Act significantly changed the every sector in the country, it has both positive and negative affirmations thus leading to impacted prices and taxes.[13] Before GST, different states had their own tax systems, different stamp duty & registration charges, leading to different tax rates and making it hard for people to adhere to the regulations.

The "One Nation, One Tax" movement made taxes easier by introducing GST. The real estate industry also faced several certain key tax problems, in terms of to give effect to economical homes before the advent of GST, things were supposed to fall under the preview of the moto "One Nation, One Tax" but in Real estate sector along with GST there are many other charges being added making things complicated.

They are discussed in detailed in the below:
Issue No 1: Different stamp duty and registration charges:
Even with the Goods and Services Tax (GST) into effect in India, homebuyers still have serious concerns about property-related taxes, especially stamp duty tax and registration fees tax. Even tho, GST being implemented to replace other indirect taxes and make one single taxation system to simplify the tax system, these above mentioned extra charges have not been removed it's still used in the real estate taxation causing financial difficulty and annoyance, which increases the cost of property purchases. There is no uniform consistency between the states stamp duties and registration tax that are been collected, violating the whole core concept of "One nation – one tax" this has added burden by causes variation in property acquisition prices.

For instance, the registration fees in Bangalore are 1% of the property value while stamp duty there is from 3% to 7%[14]. On the other side Property taxes in Mumbai are set using the Capital Value System[15], which considers the market value and not the above said tax system adding in more taxes. Stamp duty and registration fees in Pune are much higher when comparable to those in Bangalore, although they provide certain rebates but they are also slight arbitrary. Homebuyers must pay this above extra layers of taxes atop on GST, thereby escalating their financial load.

From the above system of taxation we can tell that there is an aspect of Double Taxation in Real Estate transaction.[16] Although GST was supposed to simplify taxes, property transactions still face dual taxation because people have to pay GST of 1% in case It is a reasonably priced homes and 5% on under-construction projects added to this property owners are supposed to pay Stamp duty and registration fees, up to 1% to 7% depending upon the cities or state of purchase.

This leads to a scenario wherein consumers pay taxes on taxes, therefore adding to the financial load and deterring real estate investment. But is it to be noted Projects value at Rs. 45 lakhs or less, they are described as residential properties with a carpet area of up to 60 square meters in metropolitan areas and up to 90 square meters in non-metropolitan cities for this properties the GST committee has issued notice that GST is not applicable for this price slab. Any property above this prices are all applicable to the GST slab.

For instance in a small example, we can state that any Mid budgeted person wants to buy a land in Bangalore say the house/ Land is valued ₹50 lakhs, on this if he decides to buy he has to make a payment of rupees ₹50 lakhs, now that he has to pay certain other charges such as:

• Stamp Duty - 5% i.e., to say 5% of ₹50 lakhs is coming up to ₹2.5 lakhs plus.
• Registration fees - 1% i.e., to say 1% of ₹50 lakhs will amount to an expenditure of ₹50,000 plus.
• GST - 5% - In case it is an under-construction property, then 5% is applicable on ₹50 lakhs, coming up to an expenditure of ₹2.5 lakhs, plus.
• GST service tax - 18% - On other legal costs, brokerages, and other expenditures, it comes to an average of say ₹5.5 lakhs, plus.
• GST on construction goods – 5% to 28% - The cost of building materials like cement, steel, bricks, and electrical fittings also attracts GST at the billing time.

In total for a ₹50 lakhs property a average person's spends around 11 lakhs to 15 lakhs coming around almost 22% to 25% of extra burden. Also it is to be noted that businesses may use input tax credit[17] under the GST system to lower their tax load; homeowners are not entitled to any such advantage either on GST nor on stamp duty and registration fees.

This implies that even if GST covers under-construction houses, purchasers cannot claim discounts on stamp duty and registration costs, therefore increasing the ultimate property cost well beyond expected, leading to many middle-income consumers find that these extra costs reduce their buying power, which increases their dependency on loans and financial stress. While GST was instituted to streamline taxes, purchasers still have to pay stamp duty and registration fees, therefore making property acquisitions costly and difficult. Particularly middle-class families and first-time homeowners, purchasers find great difficulty from the absence of input tax credit, double taxation, and hefty upfront expenditures.

Issue No 2:
GST rates on construction products and services are affecting building costs in real estate, with rates ranging from 5% to 28%.[18] Developers can claim an input tax credit on GST paid for goods and services from the business angel, which can help reduce building costs. However, implementing ITC is challenging due to the involvement of builders, sellers, and service providers in real estate projects. Developers cannot claim tax credits on building materials used for commercial purposes, increasing costs and raising property prices. Licensing and stamp fee payments in the real estate sector are complicated by different states' rates, which affect both built and completed buildings.

Stamp duty and registration fees add extra costs for buyers, particularly in affordable housing. The Stamps Act adds more financial costs to real estate deals, resulting in higher costs for investors and buyers due to added stamp taxes on contracts, papers, and trades. This extra financial burden makes it harder to create affordable houses, exacerbated the problems in the real estate industry.

The GST system should aim to create a clearer tax code, but it has created several legal and financial challenges for affordable real estate development. The complicated rules for ITC and compliance, along with taxes on TDR, FSI, building materials and extra stamp fees from the Stamps Act, have increased legal confusion and costs. Policymakers need to address these issues by making taxes easier to understand, providing better rules for tax credits, reducing financial burdens on developers and renters, and reconsidering stamp duty under the Stamps Act. This will support the real estate industry and promote affordable housing.

Gst Problems And Its Implication On Real Estate:

History:
July 1, 2017 the Goods and Services Tax (GST) in India is introduced by the legislature as one of the biggest tax changes that the country has ever done. Prior to GST, India had a very complex and multifaceted indirect tax system.[19] Aiming to unite these many taxes into a single comprehensive tax system to improve ease of doing business, minimise cascading effects, and encourage a smooth flow of input tax credit throughout the supply chain, the GST Act, approved in 2016 and implemented in 2017.

At both the federal and state levels, GST overcomes and absorbs many indirect tax rules. Among the key central taxes eliminated by GST are Additional Customs Duty (Countervailing Duty) and Service Tax as well as Central Excise Duty. Among other things, GST took place on the State level replacing VAT, Central Sales Tax, Entertainment Tax, Luxury Tax, and Entry Tax. This change helped to eliminate tax-on-tax, lower compliance costs, and streamline tax collecting by means of increased openness and efficiency. GST's main goals are to simplify taxes, unite a national market, improve compliance, lower tax avoidance, and increase economic efficiency. GST creates conditions fit for economic development and growth by guaranteeing consistency in tax rates between states and letting companies easily claim input tax credits. Furthermore transforming tax administration by lowering paperwork and increasing transparency is the GST Network (GSTN), an online compliance tool.

Regarding real estate, GST has had a transforming effect. Real estate transactions used to be liable to many indirect taxes, including Stamp Duty, VAT, and Service Tax, which would have cascading consequences and raise project expenses. While affordable housing projects benefit a reduced 5% or 1% but its without ITC under the new structure, building services and works contracts are taxed at 18% with input tax credit under the GST system. Better tax transparency, less black money flow, and more real estate sector efficiency have come of result from this. Still, GST does not absorb few important taxes such as Stamp Duty, which governments still impose leading to cascading effects in the real estate violating the principle and motive "One nation – One tax" .

Problems Of Gst In Aspects Of Real Estate:

As indicated above, as before one of the main worries with the GST system is double taxation. Homebuyers had to pay VAT and service tax on under-construction houses before GST.[20] Although GST was supposed to solve this issue, in fact it has persisted in different forms. In certain circumstances developers pay GST on inputs like cement, steel,[21] and other items without being able to claim complete input tax credit[22].

On under-construction residences, homebuyers may pay both stamp duty and GST, which increases their total tax load. By excluding stamp duty from GST's purview, a dual taxation[23] situation wherein both federal GST and state-imposed stamp charges apply to the same transaction results. In the real estate market, this problem influences cost. Higher taxes on under-construction homes deter investors in fresh initiatives. As a result, demand for ready-to--move-in homes has exploded as they do not draw GST, hence skews market dynamics. Conversely, developers find it difficult to handle the extra tax load, which usually results in higher project expenses and delivery delays.

Another major problem with GST in real estate is the absence of consistency and clarity in tax rates, which causes uncertainty and challenges to compliance. Regular policy and tax rate changes add even more to the uncertainty, which makes financial planning challenging for purchasers and developers. Few people critic GST for it Regularity of Rate Changes, Multiple changes in the GST rates on real estate by the government have left developers and purchasers in flux. Originally, with an input tax credit, the GST rate was fixed at 12%. Later on it was changed to 1% for affordable housing and 5% without ITC for conventional housing developments. For developers, who have to continuously modify their pricing and tax policies, these regular changes have caused uncertainty and difficulties with compliance.

Also there are ambiguous Input Tax Credit (ITC), The 2019 amendment eliminated ITC incentives on new residential developments, therefore raising developer costs that are finally passed on to consumers. The ITC provides developers with a means to offset the tax spent on raw goods, therefore improving the effective tax rate. This has raised questions about developers maybe turning to opaque pricing models in order to offset the loss of ITC advantages. Non-Uniformity in Categories.

The difference between commercial real estate, luxury developments, and affordable housing causes uncertainty about relevant tax rates. Although affordable housing pays discounted GST rates, shifting categorisation rules provide difficulties for implementation. Moreover, developers often struggle to get explanations on project categorisation, which influences compliance and price. This all aspects we can state that the main aim of implementing GST Act[24] and constituting the GST committee was failed as there is no reduction of burden it's just that the government and legislation has continued the previous burden on a different note.

Different Stamp; Registration Fees And Different Gst Prices And Constitutional Law:

Under Article 14[25] of the Indian Constitution, the equality before the law concept insists that all laws and policies should treat people in a fair and non-arbitrary way.

To do so, any legislation must satisfy two standards if it is to pass Article 14's test of equality:

• Intelligible Differentia: Clear, logical differences between groupings must guide the categorisation.
• Rational Nexus: The categorisation must to make sense in relation to the goal of the legislation.[26]

But from the time of history in real estate taxes and the present tax system show, there is significant variation in taxing across states and types of transactions, which under Article 14 can call into doubt constitutional legitimacy.

One major contributing cause to disparity is the differences in stamp duty and registration costs across states. All thou, these does not violate article 14 as such as these aspects is mentioned in the state list under the constitution. Each state government determines these taxes separately, hence homebuyers have rather different tax loads depending on where they buy their house. For instance, whilst registration costs are 1%, in Bangalore stamp duty varies from 3% to 7%; in Mumbai, property taxes are calculated using the Capital Value System[27], often resulting in more tax burden. Pune provides several incentives not often seen in other states. These differences obviously go against the goal of a unified tax structure under GST, which results in financial inequalities for homeowners all over various states causing disparities in financial aspects.

Double taxation in real estate transactions is another main problem as homebuyers have to pay both GST and stamp duty, therefore adding further financial stress. For example, a buyer of a ₹50 lakh property in Bangalore must pay 5% stamp duty (₹2.5 lakh), 1% registration fee (₹50,000), 5% GST (₹2.5 lakh for under-construction buildings), and other expenses such legal fees and broking, therefore adding an extra ₹11 lakh (22% extra cost). But, in the above laws there is no violation of article 14, but the violation pitches in when the homeowners are not qualified for any such tax relief; on the other hand companies may claim Input Tax Credit (ITC) under GST, therefore creating an unjust disparity.[28] Two different types of taxpayers follow from this, homebuyers who must pay full taxes without relief and developers who may claim tax credits, therefore lowering their tax load. The selective advantage for developers over homeowners, runs counter to Article 14 as similarly located individuals, those who buy things rather than real estate are treated unfairly.

Apart from these differences, the uneven administration of real estate transactions as opposed to other sectors generates constitutional questions. Most industries allow companies to claim ITC to help with tax expenses; Whereas the real estate common purchasers cannot. Stamp duty also falls beyond the ambit of GST, thus Article 14 forbids this discriminating treatment of real estate purchasers in comparison to buyers in other sectors because the same ideas of taxes are not always followed across various economic activities. Given these discrepancies, real estate taxes in India does produce uneven categories of transactions, therefore violating Article 14 in many respects.

Many legislative measures are required to correct these disparities and guarantee adherence with Article 14. First, to avoid double taxes, stamp duty need to be included into GST. Second, homeowners should be given Input Tax Credit (ITC), therefore enabling them to offset tax obligations akin to those of companies. Third, stable GST rates across all property types would help to guarantee tax fairness. By means of addressing these legal discrepancies, real estate taxes will be in line with the constitutional guarantee of equality under Article 14, therefore promoting a fair and effective tax system in the real estate industry.

Conclusions And Suggestion
Suggestions:

1. For Different Stamp Duty and Registration Fees - Although stamp duty is stated on the state list and does not explicitly violate article 14 as such, the differences in stamp duty and registration costs across various states cause financial discrepancies, therefore costing homebuyers more money. Nationwide uniform stamp duty rates help to provide a level playing field and guarantee reasonable prices for consumers. Including stamp duty into GST will also assist to solve the double taxation problem by streamlining the tax code and therefore lowering consumer tax load.
   
   By extending the advantage of Input Tax Credit (ITC) to homebuyers for stamp duty and registration costs, property ownership would be more reasonably priced and financial stress would be further relieved. Moreover, government rebates or subsidies for first-time and middle-class house buyers help to reduce financial load. While simplifying procedures for buyers and sellers, a single online database for property transactions might improve openness and consistency, therefore avoiding tax evasion and corruption.
    
2. Different tax rates and violation of simple tax system under GST can be resolved by reducing the construction expenses and by rationalising GST rates, establishing a consistent 12% tax across all building-related items, Taxed at a reduced rate of 5% shall be reduced to 3% to provide essential components for affordable housing developments at a guarantee cost efficiency.
   
   Simplifying the ITC procedure for developers will help to reduce costs as well-organised ITC claims would save building expenditures and eventually help homeowners. The present 5% GST on under-construction buildings should be changed to 3% or arranged tie-wise to boost house buying. Giving projects categorised as affordable housing further tax credits or exemptions will also help to stimulate growth in this industry. Furthermore, streamlining builder compliance procedures and providing a consistent ITC structure would help to lower administrative costs and possible tax evasion, therefore promoting a more open and effective real estate market.
    
3. One strategy is applying capital value, which taxes land based on its market value, therefore discouraging speculation and land withholding. When considering land, other nations apply different values, Whereas in United Kingdom they utilise the "Rebus Sic Stantibus" guideline, meaning property is valued depending on its present usage. Sometimes it is to be taken into consideration that the above methods fails if in case or when market value data is erratic, Thus the legislatures has to come up with a statutory formula to guarantee simplicity and equity in tax collecting. [29]
    
4. The high GST rates (5% to 28%) on basic goods such cement, steel and fittings raise building expenses, therefore driving up the cost of affordable homes. Affordable home developments should have a lower slab (e.g., 5% to 12%), for building materials. Persons who have provides bills of GST payment on the above said goods are to be provided with rebate facility or either that the government could think about eliminating GST on under-construction projects to boost new house building.
    
5. RERA Act to be modified to include the aspects of real estate taxation, where the Act provides incites to equal application of the taxes in the real estate sector. Also the Act should be amended to make provisions for people so that before making a purchase, homeowners should be able to determine their tax obligations by use of a centralised web platform. Standardised compliance policies need to be implemented to streamline state-wide taxes.
    

Conclusion
Particularly for purchasers and developers, the complicated and financially taxing taxes system controlling real estate in India still exists despite notable revisions. Under the "One Nation, One Tax" idea, the Goods and Services Tax (GST)'s implementation in 2017 was meant to simplify the taxing structure. Real estate transactions are still subject to many levels of taxes, however, including stamp duty, registration fees, and GST, which results in double taxation and further financial burden on purchasers. From pre-colonial and British times, land revenue and real estate taxation have changed historically to shape the present framework of property taxes in India.

Although laws like the Real Estate (Regulation and Development) Act (RERA) have introduced responsibility and openness to the industry, tax problems still go mostly unmet. The basic goal of tax consistency and economic efficiency is contradicted by the variances in stamp duty and registration fees across states. Moreover, unlike developers, homebuyers are deprived of the advantages of Input Tax Credit (ITC), hence generating financial inequalities.

The high GST rates on building supplies, which range from 5% to 28%, further inflate home costs and complicate access to reasonably priced accommodation. Furthermore adding to the uncertainty in the real estate market and impacting developers as well as purchasers are unclear policies and frequent changes in GST rates. The absence of stamp duty from GST has further complicated property transfers and resulted in discrepancies challenging the fundamental values of justice under Article 14. Many policy measures are required to meet these difficulties. Financial loads will be much lowered by consistent stamp duty across states, integration of stamp tax into GST, and extending of ITC advantages to homebuyers.

Further supporting affordable housing is rationalising GST rates on building materials and under-construction houses. Furthermore improving openness, compliance, and simplicity of taxation would be including elements of taxes into RERA and creating a centralised online database for property transactions. In essence, even while GST has simplified certain tax systems, its use in the real estate industry has generated new legal and financial obstacles. The government has to move early to streamline taxes, lower double taxation, and encourage economic inclusiveness in property purchases thereby guaranteeing affordability and justice. A more fair and growth-oriented real estate market will result from a rebuilt tax system that conforms with constitutional values and economic efficiency.

Bibliography:

• Ahuja, G. Taxation of real estate transactions: Current issues. Chartered Accountant.
• Real Estate (Regulation and Development) Act, 2016. (2016, March 25). https://www.indiacode.nic.in/handle/123456789/2158
• Admin. (2024, December 14). Understanding government taxes when buying properties in Bangalore: What you need to know - blogs. Blogs. https://housiey.com/blogs/understanding-government-taxes-when-buying-properties-in-bangalore-what-you-need-to-know
• Somik V. Lall, & Deichmann, U. (2006). Fiscal and Distributional Implications of Property Tax Reforms in Indian Cities. Economic and Political Weekly, 41(29), 3209–3220. http://www.jstor.org/stable/4418476
• Yuan, B., Connolly, K., & Bell, M. E. (2009). India. In A Compendium of Countries with an Area-Based Property Tax (pp. 82–85). Lincoln Institute of Land Policy. http://www.jstor.org/stable/resrep18292.18
• Income Tax Department, Gujarat, History of Direct Taxation, https://incometaxgujarat.gov.in/history-of-direct-taxation.php
• The Real Estate (Regulation and Development) Act, 2016, https://www.icsi.edu/media/portals/86/bare acts/THE(REGULATION AN 0DEVELOPMENT)ACT,2016.pdf
• Anant Kumar Anand & Sujata Kumari, Impact of RERA and GST on the Real Estate Sector in India, Indian Journal of Integrated Research in Law, Vol. III, Issue II, ISSN: 2583-0538 (2022).
• Inspector General of Registration, Karnataka, Stamp Duty and Registration Fees, Karnataka Gov't, https://igr.karnataka.gov.in/info-2/Fees/Stamp+Duty+and+Registration+Fees/en
• Central Goods and Services Tax Act (Amended up to Dec. 31, 2021), https://gst.kar.nic.in/latestupdates/CGSTACTamendedupto31december2021.pdf
• Understanding Government Taxes When Buying Properties in Bangalore: What You Need to Know, Housiey.com (Nov. 21, 2024), https://housiey.com/blogs/understanding-government-taxes-when-buying-properties-in-bangalore-what-you-need-to-know
• Dr. S.V. Ramana Rao, Input Tax Credit under GST in India: An Overview, Int'l J. Exclusive Global Rsch., Vol. 3, Issue 2 (Feb. 2024), available at https://ijegr.com/wp-content/uploads/2018/07/Input-Tax-Credit-under-GST-in-India-An-Overview.pdf
• GST on Construction Services & Materials: Latest 2025 Rates, Razorpay.com (Aug. 19, 2024), https://razorpay.com/learn/gst-on-construction/
• Jasmine V.M., GST & Evolution of Tax System in India, IRA-Int'l J. Mgmt. & Soc. Sci., Vol. 7, Issue 1, at 65-72 (2017), available at DOI:10.21013/jmss.v7.n1.p8
• Subrata Roy Chowdhury, Equality Before the Law in India, 19 Cambridge L.J. 223 (1961), available at Hein Online.
• Tax Reform Efforts, Lincoln Institute of Land Policy (International Studies Program Public Finance Conference, 2003).

End Notes:

1. Ahuja, G. Taxation of real estate transactions: Current issues. Chartered Accountant.
2. Real Estate (Regulation and Development) Act, 2016. (2016, March 25). https://www.indiacode.nic.in/handle/123456789/2158
3. Admin. (2024, December 14). Understanding government taxes when buying properties in Bangalore: What you need to know - blogs. Blogs. https://housiey.com/blogs/understanding-government-taxes-when-buying-properties-in-bangalore-what-you-need-to-know
4. Somik V. Lall, & Deichmann, U. (2006). Fiscal and Distributional Implications of Property Tax Reforms in Indian Cities. Economic and Political Weekly, 41(29), 3209–3220. http://www.jstor.org/stable/4418476
5. Yuan, B., Connolly, K., & Bell, M. E. (2009). India. In A Compendium of Countries with an Area-Based Property Tax (p2–85). Lincoln Institute of Land Policy. http://www.jstor.org/stable/resrep18292.18
6. Income Tax Department, Gujarat, History of Direct Taxation, https://incometaxgujarat.gov.in/history-of-direct-taxation.php (last visited Feb. 7, 2025).
7. The Real Estate (Regulation and Development) Act, 2016, https://www.icsi.edu/media/portals/86/bare acts/THE) (last visited Feb. 2, 2025).
8. Anant Kumar Anand & Sujata Kumari, Impact of RERA and GST on the Real Estate Sector in India, Indian Journal of Integrated Research in Law, Vol. III, Issue II, ISSN: 2583-0538 (2022), (last visited Feb. 7, 2025).
9. Article 20 of the Karnataka Stamp Act, 1957 - the stamp duty payable on a Conveyance (Sale Deed) of immovable property. The stamp duty is calculated based on the market value of the property as determined by the government.
10. Inspector General of Registration, Karnataka, Stamp Duty and Registration Fees, Karnataka Gov't, https://igr.karnataka.gov.in/info-2/Fees/Stamp+Duty+and+Registration+Fees/en (last visited Feb. 7, 2025).
11. Central Goods and Services Tax Act (Amended up to Dec. 31, 2021), https://gst.kar.nic.in/latestupdates/CGSTACTamendedupto31december2021.pdf (last visited Feb. 2, 2025).
12. Supra 2
13. Supra 8
14. Understanding Government Taxes When Buying Properties in Bangalore: What You Need to Know, Housiey.com (Nov. 21, 2024), https://housiey.com/blogs/understanding-government-taxes-when-buying-properties-in-bangalore-what-you-need-to-know (last visited Feb. 1, 2025).
15. Capital Value System (CVS): The tax is charged according to the property's market value. The government decides this market value, which is dependent on the location of the property. Revised market value is reported annually.
16. Double taxation is the application of taxes on the same income, assets, or financial transaction multiple times at separate times.
17. Dr. S.V. Ramana Rao, Input Tax Credit under GST in India: An Overview, Int'l J. Exclusive Global Rsch., Vol. 3, Issue 2 (Feb. 2024), available at https://ijegr.com/wp-content/uploads/2018/07/Input-Tax-Credit-under-GST-in-India-An-Overview.pdf (last visited Feb. 4, 2025).
18. GST on Construction Services & Materials: Latest 2025 Rates, Razorpay.com (Aug. 19, 2024), https://razorpay.com/learn/gst-on-construction/ (last visited Feb. 3, 2025).
19. Jasmine V.M., GST & Evolution of Tax System in India, IRA-Int'l J. Mgmt. & Soc. Sci., Vol. 7, Issue 1, at 65-72 (2017), available at DOI:10.21013/jmss.v7.n1.p8 (last visited Feb. 7, 2025).
20. Supra 17
21. Supra 16
22. Supra 15
23. Supra 14
24. The Central Goods and Services Tax Act, No. 12 of 2017, Acts of Parliament, 2017 (India).
25. Article 14 - Equality before law - The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.
26. Subrata Roy Chowdhury, Equality Before the Law in India, 19 Cambridge L.J. 223 (1961), available at HeinOnline (last visited Feb. 7, 2025).
27. Supra 13
28. Dr. S.V. Ramana Rao, Input Tax Credit under GST in India: An Overview, Int'l J. Exclusive Global Rsch., Vol. 3, Issue 2 (Feb. 2024), available at https://www.ijegr.com (last visited Feb. 7, 2025).
29. Tax Reform Efforts, Lincoln Institute of Land Policy (International Studies Program Public Finance Conference, 2003).