India has now implemented new tax reform GST from 1st, July’17 called as one nation one market one tax. It has spotlight most of taxpayers and dealers due to its compliance requirements, but how it affects the taxes in real estate sector (RES). It ensures different views from industry experts. The RES is one of the very momentous sectors of the Indian economy. It is the largest employer in the economy after agriculture, devoting an average of 5-6 % to the GDP. The Govt. of India has been supportive to the RES. The Union Cabinet has approved 100 Smart City Projects in India Aug, 2015. The Govt. has also raised Foreign Direct Investment (FDI) limits for townships and settlements development projects to 100%. Hence this article study is most important topic shows real estate opportunity and challenges despite GST obstacles in present scenario. 
 
KEYWORDS:  Real Estate Sector (RES), GST, REITs, Foreign Direct Investment.

Introduction The real estate sector is the biggest employer in India after agriculture and currently employs over 40 million workforces over 250 sectors and ancillary industries. It plays an important role in employment generation in India. Investing in real estate is not only a best investment, but it also allows for transfer of the property from one generation to the next. The total market size of Indian real estate is predicted to have doubled since 2008 and come to INR 7 lakh crore. India has the largest housing market in the world, with over 75–80% share in the total real estate market size in India. The expectation for growth is significant as India would need to develop over 170 million houses until 2030 to meet the demand of the rapidly urbanizing population. The real estate market of India is expected to touch US$ 180 billion by 2020. Only housing sector is expected to contribute around 11% to India’s GDP by 2020. Retail, hospitality and commercial real estate are also growing no doubtly. It provides the needful infrastructure for India's growing needs. New housing launches across top seven cities in India increased 27% per year in Jan-Mar, 2018. The Indian RES has witnessed high growth in recent times with the increase in demand for office as well as residential spaces. But the way, in which the real estate sector is developing, the study shows how the new indirect tax system of India affects the real estate sectors. 

In the before tax regime, when property under construction was bought, the purchaser was subjected to the paid of VAT, service tax, stamp duty, and registration charges. Property bought after completion were exempt from VAT and service tax, but stamp duty and registration charges were payable. The new indirect tax system as GST will alone solve the challenges faced by the real estate sector and help the sector to come out of its long slumber. From GST comes transparency in the functioning of RES. Hereby the overall increase in price for new residential properties could be lower than that for new commercial properties. It will reduce the cost of purchasing houses for buyers as in the previous tax regime, which they had to pay as Service Tax and VAT on purchase of residential unit when booked prior to their completion and also developers had to pay as excise duty, custom duty, CST and Entry tax, which is non-creditable tax cost on their professional side, which is included in the price of