What is the gst percentage on prepossession charges?

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Hi,

I have question on GST percentage of pre-possession charges for under construction property. The pre-possession charges normally includes below items for property:

  1. Share Money
  2. Twelve Months Provisional Maintenance Deposit
  3. Twelve Months Provisional Maintenance in Advance
  4. Legal Charges & Society formation charges
  5. Electric, Water Connection & Piped Gas Connection Charges
  6. Common Infrastructure Maintenance Charges

Can some one help what is normal percentage of GST on these charges? And what is the charges in case of property under scheme of Pradhan Mantri Awas Yojna?

Thanks 

 

Replies (9)

1. No GST over any advances, but for any other maintenance charges GST is 18%.

2. GST over PMAY is 8% (exclusive of land cost).

Thank you Dhirajlal Sir for the clarifications.

So can I consider in case of PMAY, the GST on Pre-possession is also 8%?

No, those services are independent of the concessional rate.

What will be GST now on pre possession charges for ready to move in property
 
 

What will be GST now on pre possession charges for ready to move in property?

Same reply as above.

But if paid to CHS society, no GST upto 7,500/- Monthly charges collected. Or over security deposits.

 

 

We are goind to pay 24months advance maintenance to builder for ready to move in property. Monthly maintenance is 7020rs. Society is not yet formed. So is GST applicable
We are goind to pay 24months advance maintenance to builder for ready to move in property. Monthly maintenance is 7020rs. Society is not yet formed. So is GST applicable

Yes, at 18% rate.

After reduction in GST for property more than 40 lakh GST will be 5%. However, builder is giving a reason if he reduces the GST percentage from 8% to 5% then Government/Tax department will not give them input credit subsidiary.  1) What is input subsidiary here for developers? 2) Is that true statement about input subsidiary?

Builder is reluctant of reduce the GST to 5%.

Read more at: https://www.caclubindia.com/forum/what-is-input-credit-how-does-it-affect-developers-and-gst-percentage--509524.asp

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