GST on Additional charges payable to builders
This query is : Resolved
07 June 2025
Please help with the GST rates for the following charges which needs to be paid to the bulider.
1. Electric connection/Water charges.
2. Club house charges.
3. Share money application charges.
4. Society formation charges.
5. Legal expenses.
6. Apex body charges.
7. Advance adhoc maintenanace charges.
8. Infrastructure/development charges.
9. Pipeline gas connection charges.
1. Electric connection/Water charges.
2. Club house charges.
3. Share money application charges.
4. Society formation charges.
5. Legal expenses.
6. Apex body charges.
7. Advance adhoc maintenanace charges.
8. Infrastructure/development charges.
9. Pipeline gas connection charges.
08 June 2025
1. If the aforesaid charges (collectively or individually) become part of stamp duty of the property, we can safely argue that the said charges are in relation to or incidental to supply of construction services and therefore, will form a part of composite supply of property. Accordingly, GST shall be leviable at the same rate as leviable on principal services, i.e., supply of property.
2. However, if the said charges are not included in the computation of stamp duty charges, it will be considered as individual independent supply and it will be difficult to argue the same as composite supply of property and accordingly, GST @ 18% shall be leviable.
1. If the aforesaid charges (collectively or individually) become part of stamp duty of the property, we can safely argue that the said charges are in relation to or incidental to supply of construction services and therefore, will form a part of composite supply of property. Accordingly, GST shall be leviable at the same rate as leviable on principal services, i.e., supply of property.
2. However, if the said charges are not included in the computation of stamp duty charges, it will be considered as individual independent supply and it will be difficult to argue the same as composite supply of property and accordingly, GST @ 18% shall be leviable.
10 June 2025
Thanks for your reply Seetaramanji.
10 June 2025
You are welcome...
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