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Corporate News *  Dept. Can’t Classify Product as Zarda Scented Tobacco After Repeatedly Approving It As Chewing Tobacco: CESTAT *  Mere Uploading Of GST Order On Portal Is Not “Valid” Service: Tripura HC *  CGST Can Proceed Even If SGST Closed Similar Case Earlier: Delhi HC *  SC upholds 28% GST on online gaming with retrospective effect. *  West Bengal Govt cuts E-way Bill Threshold limit to Rs. 50,000 for intra-state goods movement. *  Criminal Prosecution Under Central Excise Act Can’t Continue After CESTAT Sets Aside Duty Demand on Merits: Punjab & Haryana High Court. *  Madras High Court Quashes GST Assessment Orders for Denial of Personal Hearing; Remands Matter Subject to 10% Deposit *  Ex Parte GST Order: Madras High Court Directs Immediate Removal of Bank/ITC Attachment Upon 25% Deposit *  J.K. Cement Receives GST Demand Order of Rs 8,02,113/- from Ahmedabad Tax Authority *  Delhi Police EOW Busts Alleged Rs. 128 Crore GST Fake Invoice Network. *  REPLY TO SCN CAN’T BE TREATED AS “EMPTY FORMALITY”: ORISSA HIGH COURT QUASHES GST DEMAND OF RS. 57.30 LAKH *  Challenge to CGST Provisions restricting ITC to Bonafide Purchasers : Allahabad HC issues notice *  CBIC Notifies Revised Customs Tariff Values for Edible Oils, Gold, Silver, Brass Scrap and Areca Nuts *  Delhi HC Orders Removal of GST Attachment After Statutory 1 Year Period Expired *  GSTAT Extends Relaxed Appeal Filing Guidelines till December 31, 2026 *  AO fails to Provide Import - Export Data from DGFT to Taxpayer for Reconciliation *  Gold, Silver Imports To Get Costlier As Govt Raises Customs Duty To 10%  *  GSTAT Enables Pre-Payment Access to Document Upload and Checklist for GST Appeal Filing *  GST Portal Restrictions Can’t Override Statute: Gujarat HC Allows Cross-State Transfer Of CGST ITC After Amalgamation *  Centre Revises HS Codes for Large Diameter Steel Pipes Used in Oil & Gas Pipelines *  Customs Duty Liability Arises On Warehouse Clearance Date: Supreme Court *  Government lifts export ban on de-oiled rice bran *  CESTAT Grants 12% Interest on Pre-Deposit for Investigation from Date of Deposit till Refund and Denies Interest on Interest. *  Government Overhauls GST Classification Framework for Non-Alcoholic Beverages; Fruit Juice Drinks, Milk-Based Beverages and Caffeinated Drinks to Attract Revised 5% and 40% GST Rates from May 1, 2026 *  India’s gross GST collections hit a record Rs 2.42 lakh crore in April, up 8.7% *  Customs clearance stalled, revenue hit over MRP dispute *  Shipping Corporation explores Middle East routes as Hormuz tensions disrupt cargo movement *  India, Kenya signs MoU for exchange of pre-arrival customs information *  No demand of Taxes under Reverse Charge if Tax Already Discharged by Service Provider under forward charge *  The India-New Zealand Free Trade Agreement, signed "once-in-a-generation" deal that eliminates tariffs on 100% of Indian exports to New Zealand
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GST UPDATE ON ADDITIONAL CHARGES COLLECTED BY BUILDER

GST UPDATE ON ADDITIONAL CHARGES COLLECTED BY BUILDER
 
GST UPDATE ON ADDITIONAL CHARGES COLLECTED BY BUILDER:-

There has been confusion regarding the rate of GST leviable on additional charges collected by builder in lieu of sanitary fittings, power backup etc. It is pertinent to mention that recently government has released FAQ on GST in respect of construction of residential complex by builders/developers wherein this issue has also been covered. It has been stated in question no. 12 of the FAQ that if the consideration is in respect of the additional services provided before the first occupation or before the receipt of occupancy certificate, the additional charges will form part of the transactional value or total consideration for the supply of the construction service and so GST is payable on such additional charges at the rate applicable for construction of residential complex service. It is further clarified that if the consideration is towards sanitary fittings, power back up charges which is undertaken after the first occupation or receipt of occupancy certificate, such additional consideration will not be part of construction of residential complex service. In that case, the additional charges would be treated as towards an independent works contract service which is distinct from the initial construction of residential complex service. Hence, in this case, additional charges would attract GST @ 18% without any abatement from the value. From the above clarification, it appears that the rate of GST will be determined on the basis of time at which such additional charges are recovered from the prospective flat buyers.
 
Similarly, there is confusion as regards the rate of GST applicable in case of ‘other charges’ collected by the builders from the buyers such as preferential location charges, parking charges, firefighting installation etc. It is clarified vide FAQ that such charges are naturally bundled and supplied in conjunction with the construction service and so GST at the rate of 18% on 2/3rd value of such naturally bundled services is payable on the said charges.  Although, there is disclaimer at the end of the FAQ that the replies given have no legal backing but the assessees may place reliance on the answers and prove their bonafide belief.
 
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