Gst on redevelopment of housing society

2848 views 2 replies

Mufaddal Malkani

Student

48 Points Joined January 2010

Hello,

Our society is going in redevelopment and there is a new notification under GST according to which all the society members will be liable to pay GST on the entire carpet area alloted in the redeveloped building @ 12% on the market value of the new flat i.e. existing area plus additional area. Because of this notification our liability will be of around 10lacs.

My query is since we are not receiving nor paying any consideration to the builder so why is this GST applicable?

If this is the case no society can go in redevolpment and what about slum redevelopment.

Replies (2)

SAMEER KARBHARI SONAWANE

Profession

27 Points Joined March 2009

Dear Mufaddal

Same may be considered as Barter Transaction. Society members are transferring Development Rights to Builders and agianst the same receiving constructed Area. Please note that GST is applicable on barter transactions also.

Thanks

Nipul Pau

proprietor

22 Points Joined December 2018

Hi,

If you say its a barter transaction , then what is the rate of GST applicable ? When is the GST payable ? Is it payable by the developer or the actual owners ? and lastly whould it be calculated on the differencial value , for eg, if the orginal area is 500sqft and after redevelopment it comes to 700sqft. so do we have to pay on 700 or 200, the difference. Can you please guide us on the same.