Hi
Is the cooperative society already formed?
If the payments are made to the society, then the exemption of 5000 is available.
On the other hand, all payments made to the builder for the charges shall be liable to GST.
GST on Society charges paid to builder on time of possession
I have bought a new flat in Thane region. At the time of possession I need to pay specific amount as socitey charges to builder ,please find its breakup below. Formation and Registration of said Organisation : Rs.3000/- Infrastructure Cost : Rs.30,000/- Club House Charges : Rs.50,000/- Munciple Development Charges : Rs.70,000/- Transfer/Electric Meter Charges : Rs.50,000/- Legal Charges : Rs.5000/- Solar /Power Backup : Rs.20,000/- Water Connection Charges : Rs.15,000/- Share Money : Rs.600/- Society Maintenance charge for 1 Year(Rs.2100/- per month) : Rs.25,200/- Munciple Charges : Rs.25,000/- Total amount is Rs.2,93,800/- Builder is now asking me to pay 18% GST on whole Rs.2,93,800/- Amount which comes across Rs.53000/- As per my knowledge I am liable to pay GST on maintenence charges if they are above Rs.5000/- Please advice.
Asked 7 years ago in GST
No Society is not formed.I need to make this payments to builder in a single transaction. On the other hand ,if all payments made to builder for charges will attract GST,then at what percentage ? 12% or 18%?
Asked 7 years ago
Also its nearing possession property.
Asked 7 years ago
All charges that can be considered a part of construction activity shall be chargeable @ 12%; all other charges @18%.
The exemption of 5k is not available for payment made to builder. It is available for payment made to housing society.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hello,
GST shall be paid @ 12% to builder. Plus it will not be charged on government dues or deposits like Electric Meter Charges/ Power Backup/ Water Charges/ Share Money/ Municiple Charges etc.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
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