GST ON UNIT DISTRIBUTION BETWEEN PARTNERS IN SINGLE AGREEMENT, Goods and Services Tax - GST

[Kalpesh Shah]

Querry :

Fact of the case :

One of my client is a Developer. It is a Partnership Firm, which undertook Project of Construction of Raw Houses. Now Project is almost complete but it will take time to get OC from Municipal Corporation. Now Partners have decided to distribute the unsold Row Houses in a Single Deed of Distribution. They are distributing total 5 Row Houses between 3 Partners. Each Row House Area is less than 60 Sq Mtrs Carpet Area and Value Less Than ₹ 45 Lakhs. But in Aggregate (Total of 5 Row Houses) Area Exceeds 60 Sq. Mtrs Carpet Area and Value Exceeds ₹ 45 Lakhs. All 5 Row Houses distributed in a Single Deed of Distribution.

Now my question is :

1. Rate of GST Applicable ? 1% or 5% ?

2. What if we mention in agreement Carpet Area and Value of Each Row House Separately ? Will the GST Rate Change ?

Posts / Replies

[Shilpi Jain]

The rate of tax would be 1% as the affordable residential appartment def. has to be seen per unit.

[Kalpesh Shah]

Thank you for Clarification