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 on redevelopment: tax applies to the value of additional consideration received, not mere replacement of existing area.
The taxable value of developer construction services in redevelopment projects is confined to the value of additional area or other monetary consideration received by existing flat owners; replacement of the existing area is not a taxable supply absent consideration. If work and consideration are attributable to the existing area, GST may apply to that work. Valuation must be determined with care under the applicable valuation rules and the rate notification, and advance rulings inform the interpretation of taxable value in these arrangements.