- Electricity and water connection charges are classified under external development charges, liable to GST. You are receiving the services from the builder therefore liable to GST.
Need reference documentation to back up my argument that GST is not applicable on Electricity and water connection charges taken by builder at the time of construction of a villa with in a gated community, which is part of a big construction project consisting of villas and Appartments. Builder is arguing that since the connection is being taken in his name, GST is applicable. He also clarified that at the time of handover the connection and meter will be in my name.
- Electricity and water connection charges are classified under external development charges, liable to GST. You are receiving the services from the builder therefore liable to GST.
If the builder is charging you this amount this would be service for him and included in his turnover so he will have to charge GST on it.
If it was taken by the society which would be registered as a RWA then same would not be liable for GST.
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Dear Sir,
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It is advisable to take a phone consultation for detailed discussion.