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

GST applicability on redevelopment flats: levy typically targets additional area value or may apply to entire redevelopment depending on perspective.
The core issue is whether GST applies when redeveloped flats are returned to original owners. One view: GST is chargeable on the value of any additional area received beyond original entitlement, with a rate of 1% or 5% depending on affordable housing status. Another view: the entire redevelopment activity may be liable to GST, and the analysis depends on whether the query is from the owners' or developer's perspective and whether entitlement is measured by the development agreement or original area.