GST in Apartment Complex managed by the builder
Our apartment complex, Purvanchal Royal Park , Sector 137 NOIDA is maintained by the builder. The possession of this complex was given in 2014.
-The maintenance is done by the builder through its company purvanchal projects private ltd.
-The builder charges INR 1.95 per square feet for the maintenance Plus applicable Taxes
- Apartment sizes are 1315 sq ft, 1735 sqft, 1950 sqft and 2350 sqft
-Club house charges are separate at about 10000 rs per annum irrespective of the apartment size
-Total number of apartments are 1140
- An elected Board of Management of the Apartment Owner's association exists and is registered as per the provisions of the UP Apartment Owners bye laws
-The Board of Management of Apartment Owner's association is not involved in the maintenance of the complex as yet
-No contract of maintaining the complex, exists between the builder and the Apartment Owner Associations elected body
-At the time of possession, the builder had a short maintenance contract signed between the builder and the residents outlining the terms of the maintenance, rates etc.
-The builder always charged 15% service tax prior to GST , in addition to the base charges shared above
-Recently the builder has raised an additional demand for( 3% ) the differentiathe residents of paying l in the taxes from 15% service tax to 18%
Now the Questions:
1. In your experience, do you recommend the Apartment Owners association having a maintenance contract with the builder?
2. Does outsourcing the activities of maintenance of the complex by doing point # 1 relieve residents from paying the GST?
3. In the current scenario, in any case, is GST @ 18% applicable and paid by the individual flat owners to the builder in turn to be paid to the government?
Asked 7 years ago in Civil Law