What is the gst percentage on prepossession charges?

725 views 9 replies

Adeeb Cheulkar

18 Points Joined January 2019

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:

Share Money
Twelve Months Provisional Maintenance Deposit
Twelve Months Provisional Maintenance in Advance
Legal Charges & Society formation charges
Electric, Water Connection & Piped Gas Connection Charges
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)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210815 Points Joined July 2016

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).

Adeeb Cheulkar

18 Points Joined January 2019

Thank you Dhirajlal Sir for the clarifications.

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

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210815 Points Joined July 2016

No, those services are independent of the concessional rate.

Janvi Patel

6 Points Joined April 2019

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

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210815 Points Joined July 2016

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.

Janvi Patel

6 Points Joined April 2019

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

Janvi Patel

6 Points Joined April 2019

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

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210815 Points Joined July 2016

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