Real estate industry in India in the recent past has seen a phenomenal growth, not just in the Tier-1 cities, but even Tier-2 and Tier-3 cities and towns. The industry is in the cusp of increased regulations, with bills such as the Real Estate (Regulation and Development) Bill, pending for approval in the side lines. GST is another development that will have a significant impact on this sector. The real estate sector is likely to attract a GST rate of 18 per cent and though the impact of this tax on residential real estate prices will be broadly neutral, there is bound to be some variation due to diverse taxation policies and practices across states. With the announcement of the Goods and Services Tax (GST) and the implementation of GST for real estate, 2017 is bound to have a brighter horizon for the sector. Let’s understand the impact of GST on real estate. Meanwhile in GST news, earlier this month, the government stated that property prices would not witness inflation once GST for real estate would be implemented. Budget 2017 saw the announcement of the affordable housing initiative under the Prime Minister Modi Government. This paper will highlight the impact of GST in real estate sector.