GST to Reduce Rental Value of Commercial Property in Chandigarh

By Tricitynews Reporter

Chandigarh 17^th May:- Goods and Services Tax is about to be implemented on 01.07.2017. It is going to impact business in Chandigarh to a very large extent. For the first time Chandigarh will have its own tax law. Since GST is a destination based consumption tax, it is expected that it will certainly increase the tax revenue of the Union Territory. But on the other hand Chandigarh might witness another positive change.

Chartered Accountant Keshav Garg informed that the godowns and the warehouses situated at outer Chandigarh might also get closed leading to lesser movement of heavy vehicles. Since under GST tax rates are going to remain same throughout the country, companies would not prefer to stock its items in Chandigarh. Rather the shopkeepers will prefer to buy goods as per the requirement of the customer. He mentioned further that the concept of distributors of companies shall go away and the shopkeeper would directly deal with the company concerned. This will lead to many commercial spaces getting vacant which can be utilized for the service industry. The rental value in the markets like sector 26 are certainly going to fall.  New warehouse/godowns shall come up in the nearby areas of Panchkula, Mohali, Zirakpur, which would lead to markets at Chandigarh border to flourish. Goods and Services tax which is likely to be implemented in July 2017, will surely transform the way businesses are being done in Chandigarh.