Clarification required whether in Maharashtra Gst is leviable on Redevelopment only on +nal area recd or on total new area ie existing area plus additional area

[Kumar]

In Maharashtra in Redevelopment of flats whether GST is applicable on the value of  additional area recd or on the total value of the new flat (existing area of the flat owned +additional area recd ) Certain builders are demanding GST on the total area 

AI Summary

GST in redevelopment applies only to additional area or consideration; replacement of existing flats is non-taxable supply In Maharashtra redevelopment projects GST is levied only on the value of the additional area or other consideration received by the developer, not on the replacement of the existing flat area. The reconstruction of the old area supplied back to owners is treated as replacement without separate consideration and therefore does not constitute a taxable supply. Multiple advance rulings support this position, so builders claiming GST on the total new flat area (existing plus additional) are seeking tax beyond the accepted legal position.