AFFORDABLEAPPARTMENT

[ASIM DAS]

Sir,

A developer in Kolkata constructed multi storied building under joint development agreement whereby land was from a landowner . This building contains various flats under 'Developer's Allocation' some having carpet area more than 60 sq mt some units less than 60 sq. mtr. So while selling flats /residential units having carpet area less than 60 sq. mt. can the developer impose 1% GST and for those having more than 60 sq. mts. carpet area 5 % , the price limit being within the prescribe limit as per GST law. Please guide me.

Regards

[Shilpi Jain]

Yes, This is the way it has to be done,.

Affordable is not for the project as a whole but has to be identified per unit.

AI Summary

GST classification of residential units requires unit-wise identification for concessional rates based on carpet area eligibility. GST classification of residential units under a joint development agreement is determined per unit: developer allotted flats must be identified individually for concessional treatment, with units meeting the statutory carpet area and price conditions eligible for the lower concessional rate and units exceeding the carpet area threshold subject to the higher concessional rate; affordable classification cannot be applied to the entire project but must be made unit wise.