The amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.
Authority for Advance Ruling — GST on External Development Charges and Infrastructural Development Charges – The applicant engaged in the business of development of residential and commercial properties. For sale of developed property, the Applicant enters into agreements with buyers and is paying GST on consideration received from buyers, where arrangement with buyers is entered into before receipt of completion certificate, by classifying its services under SAC 995411. The Applicant sought an advance ruling as to whether the amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.
Held that:- The Hon’ble Authority ruled that the amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.
The amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.
Authority for Advance Ruling — GST on External Development Charges and Infrastructural Development Charges – The applicant engaged in the business of development of residential and commercial properties. For sale of developed property, the Applicant enters into agreements with buyers and is paying GST on consideration received from buyers, where arrangement with buyers is entered into before receipt of completion certificate, by classifying its services under SAC 995411. The Applicant sought an advance ruling as to whether the amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.
Held that:- The Hon’ble Authority ruled that the amount of statutory charges i.e. External Development Charges and Infrastructural Development Charges, recovered by the Applicant from buyers and paid further to respective government authorities will form part of value of taxable supplies being made by the Applicant.