We had a building constructed in 1976. In 1998 02 floors were added and 01 floor allotted to each for three brothers. The floors were duly registered in DDA in individuals name and independent House Tax was being paid to MCD Delhi by each brother. Due to non availability of Lift the family in 2nd floor who have acute knee problems were finding it extremely difficult to come down or go up. So a Lift installation was necessary. We three brothers decided to enter into a collaboration agreement with a developer for demolishing existing building and build 4 floors with stilt parking.. each brother would retain his original floor and the 3rd floor to be given to builder in lieu of his services. This was started in Mar 2016 and the building is nearing completion.The builder would retain the 3rd floor and could keep it for his own use or may decide to sell it in future. What would be the GST implication if any for the 03 brothers after completion of the house in near future now that service Tax is not there but GST is in vogue
What would be the GST implication for the landowner if they treats this as a Construction Project. Get the 4 floors with stilt parking built through a builder and give him 01 floor in lieu of that.
If GST is applicable how is the valuation worked out on which GST is payable? Any concept of Circle rate for construction in that city and location becomes applicable? Would like to know how the GST if any is assessed for a reconstructed building through a developer or builder, where the house tax is being paid and the reconstruction was necessitated due installation of Lift and introducing Car parking space.
How long it normally takes to receive a response to the queries.
Dear Sir,
You need to register under GST as a landowner and need to pay GST for the consideration received i.e. the value of 3 flats. I think rate would be 18% as land is provided by you so there would not be any deduction of 1/3 rd value from the total consideration.
Dear Sir, It is not clear that on what consideration value the GST would be payable . Shall it be on Construction cost based on the circle rate in that location or on some other basis. 18% of what since it is a case of reconstruction on collaboration basis with incorporation of Lift. GST of the 4th flat which the developer receives as a barter for building the 3 flats for us (without required to pay for the notional land value) shall be also applicable, if Yes who pays for it? Request clarification. Thanks, PSBanerjee
I think JDA concept would apply here but I still advise to get in touch with consultant in-person well versed with GST provisions.
k
My advise is to get in touch with a GST professional to get better clarity.
.
GST will not be charged on resale of house by landowner in future after receiving the house
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
