Page 65 - CA Final GST

Badlani Classes

Particulars Value
1.Construction of road for general public 16,75,000
2.Renovation services provided to Govt. relating to plant for sewerage 12,00,000
treatment
3.Gross Amount charged for providing works contract service 2,00,000
Total Tax 30,75,000
GST @ 18% 5,53,500
Less: Credit of capital goods, inputs and input services is allowed 15,755
Net tax payable 5,37,750

Que. A builder has entered into agreement to sell a flat (carpet area 1800 sq.ft) out of 50 flats to
a customer. The breakup of his charges are as follows:
1- Price of flat (including apportioned value of cost of land): `42,00,000
2- Prime Location Charges (PLC) (extra charges for getting sea view): `2,00,000
3- Charges for providing space for covered parking: `1,25,000
4- Club membership fee(for club to be formed after construction is complete): `2,00,000
5- Charges for carrying out modifications as required by customer: `2,00,000
6- Stamp duty for executing sale deed on actual basis: `4,00,000
7- Documentation Charges : `75,000
8- Maintenance charges to maintain building till the residential complex is handed over
to Housing Society of members: `4,00,000

The builder received payment of `15,00,000 before construction was complete and balance
amount was received after obtaining completion certificate from the Corporation. the
builder had used cement, steel and building material during construction, on which SGST
rd
paid was `42,000 and CGST - `42,000. The value of land is 1/3 of the total consideration
for the supply. The applicable rate of CGST is 9% and SGST is 9% Compute the tax
payable.
Ans. Computation of Value of taxable supply
Price of flat (including apportioned value of cost of land) 42,00,000
prime Location Charges (PLC)(extra charges for getting sea view) 2,00,000
(These charges are part of construction service of flat. These are part of
‘naturally bundled services’)
Charges for providing space for covered parking (These charges are part 1,25,000
of construction service of flat)
Club membership fee (for club to be formed after construction is Nil
complete). These are not part of construction service of flat. This is not
a part of composite supply.
Charges for carrying out modifications as required by customer (These 2,00,000
charges are part of construction service of flat).
Stamp duty for executing sale deed on actual basis (Stamp duty shall not Nil
form pat of value of service. It is only reimbursement of expenses
incurred on behalf of the customer)
Documentation Charges (These charges are art of construction service 75,000
of flat)
Page64

Central Goods & Services Tax Act, 2017