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New builder must charge same GST as opted by former housing developer
The New Indian Express Dharmapuri
|April 19, 2025
THE Maharashtra Authority for Advance Ruling (AAR) has said that when a new builder takes over an under-construction housing project, they must follow the same GST rate that the previous builder (old promoter) had chosen.
Hearing an application by Godrej Residency Private Limited (GRPL), the Maharashtra AAR has said Godrej Residency must continue levying goods and services tax (GST) at an effective rate of 12% on all sales — including new and existing buyers — in a residential project it acquired from Neelkamal Realtors Towers Pvt Ltd. The ruling clarifies that GST rates for real estate projects are tied to the project itself, not the promoter, preventing Godrej Residency from switching to a lower 5% rate for new customers.
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