Clarification on Gst applicability on flats given back to original flat owners on Re development

[Kumar]

Dear Sirs /Madam 

Request your views whether in Maharashtra state GST is applicsble on flats given back to original flat owners and if applicable whether it is applicable only on the extra area given or on the TOTAL AREA (Existing plus Additional ) and the rate applicable Pls oblige by giving your valuable advice 

 

[Sadanand Bulbule]

If the original flat owners receive additional areas beyond their original entitlement, GST is applicable on the value of additional  additional area. The rate would be 1% or 5%, depending on whether the property qualifies as affordable housing.

Consult tax experts for professional advice.

[Kumar]

Thank you Sir  can you suggest some experts whom i can consult with their email id  further you have mentioned chatgeable if they receive more than eligible area we have recd as per Development agreement so is that eligible area or are you meaning original flat area before redevelopment pls let me know the expert details and i will contact them with all the details.

N Kumar 

[Shilpi Jain]

In case of re-development, the entire redevelopment activity would be liable to GST. Here are you asking from the perspective of owners or developer?

AI Summary

Does GST apply only to extra built-up area or to total value in redevelopment when flats returned to original owners In a redevelopment scenario, the forum asks whether GST applies when flats are returned to original owners and whether it applies only to additional area or the total area. One view states GST applies only to the value of additional area beyond the original entitlement, with rates of 1% or 5% depending on affordable housing status, and recommends consulting tax professionals. Another reply contends the entire redevelopment activity may be liable to GST and queries whether the perspective is that of owners or the developer, indicating factual and contractual details affect the tax treatment.