Gst on redevelopment of housing society

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)

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

 

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details