GST on other charges to be paid to the builder

Dear Team,

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.
 

Replies (5)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) applicable to various charges levied by builders, beyond the main construction cost. It explores whether ancillary charges like electric and water connections, clubhouse fees, and legal expenses should follow the principal supply's GST rate, especially when they are part of the initial agreement. The general consensus is that if these charges are integral to the construction service, they should be taxed at the same rate as the main construction, typically 5% for under-construction properties.

Let the builder raise the bill

That is the reason for posting this query.

These are ancillay to construction services provided by the builder. Hence, the tax rate as charged by the builder on construction charges should be charged for these as well. This is because of the concept of composite supply under GST where tax rate as applicable on principle supply (construction services) would be applicable on the entire supply.

Builder has charged a GST rate of 5% on the unit cost whereas infrastructure/development charges charged at GST of 12%. This is a under construction flat. 

As per the GST law, builder has to charge GST at 5% if all the charges collected by the builder are forming part of the initial agreement. 

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