GST on land owner flat in a JDA
Our family got into a JDA with a reputed builder in Chennai on April 9 2017 before the introduction of GST. At that time the builder expected approximate tax of about Rs 1.5 Laks/flat.
The project has reached completion now and the builder has sent a notice claiming GST of 10 Lakhs/flat at 18% GST rate taking construction cost of Rs 4500/sq ft when the prevailing construction cost for similar work is at the max is Rs 2000/sq ft..
From browsing internet I learn that there are multiple ways to arrive at the value of the construction service. ( Market Value/ Similar Quality Service/ Construction Cost+10%) What is the optimum GST rule to compute the value of the construction and what GST rate is applicable in this case. From April 2019, the GST is only 5% for builder if the builder uses registered supplier. So why the builder is charging land owner 18%?
Asked 8 months ago in GST from Bangalore, Karnataka