Gst on redevelopment of housing society

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Mufaddal Malkani

Student

31 Points Posted on 23 June 2018

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

22 Points Posted on 06 July 2018

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 Posted on 19 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.