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Gst applicability in case of self development of residential society

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sangeeta

Accountant

63 Points Posted on 15 June 2020

if residential society developed it's society themselves by taking necessary BMC permissions towards premiums, FSI, tdr & pays for the same. Developer appointed by society, only execute the project & raise his bill to society. New flats will be sold by society only by executing sale agreement between society & prospective buyer. developer is not a part of new sale agreement. Then, 1. is society liable to pay gst on free flats for the area ( existing area + new free area) tobe be given to existing members of the society? 2. if yes how the value of flats should be determined, 3. what is rate of gst? 4 can society utilise ITC of purchase bills, bills raised by developer? 5 is society suppose to charge gst to their new buyer, at what rate of gst,?

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Quick Summary

This discussion explores the Goods and Services Tax (GST) applicability when a residential society undertakes its own development project, including obtaining permissions and appointing a developer. Key questions revolve around whether the society is liable for GST on free flats allocated to existing members, how the value of these flats should be determined, the applicable GST rate, and the utilisation of Input Tax Credit (ITC). It also questions whether the society needs to charge GST to new flat buyers and at what rate.