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TMI BlogGST on Hardship Compensation, Rent received from DeveloperX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All I have a query with regards to GST on receipt of Hardship compensation, rent and other receipts received by a residential flat owner from a builder on redevelopment of society premises. Whether GST would be applicable for the receipts from the builder to the member. if yes then under what entry and the rate for same. whether a plea can be raised that the money received is not in the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of furtherance of business hence no supply. Kindly guide. Thanks in advance CA Yogesh Ashar - Reply By Amit Agrawal - The Reply = It is risky to look these receipts from developer by individual residential flat owner - in isolation - to determine gst liability. One needs to look into entire arrangement of redevelopment of society ( as there are many different ways such arrangement ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be worked out ) by holistic reading of agreement/s entered into, between builder, concerned society and its member-constituents before addressing issues raised in the subject query. For just example/s among many possibilities: Subject receipts can be in nature of 'liquidated damages' not liable to gst. They also can be part of 'consideration' paid by the builder towards overal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l arrangement agreed between all concerned parties and thereby, liable to pay GST. The plea that 'these receipts are not in the nature of furtherance of business hence no supply' cannot be looked into in-isolation, specially considering very broad definition of 'business' u/s 2 (17) of the CGST Act, 2017. These are ex facie views of mine and the same should not be constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued as professional advice / suggestion. - Reply By Shilpi Jain - The Reply = There was a recent decision in the case of RCM on renting of residential premises for personal use. It was held by the High Court that it would not be liable to GST as it is for personal use. Taking cue from this decision whether a view can be taken that the amounts received from the builder is in relation to person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al residential stay of the person and thereby not liable to GST. In this regard the 20lakhs turnover also should be looked into. - GST on Hardship Compensation, Rent received from Developer - Query Started By: - Yogesh Ashar Dated:- 10-12-2022 Goods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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