New Composition Scheme for Builder and Developer

GST Real estate



No. D.C.(A&R)-02/VAT/MISC/2017/2/ADM-08

Trade Cir. No. 18T of 2017

Mumbai: 31.05.2017



Ref. (1) Finance Department Notification No. VAT-1510/C.R.65/Taxation-1 dated 9th July 2010.

(2) Finance Department Notification No. VAT-1517 /C.R.-57/Taxation-1 dated 26th May 2017.

(3) The Maharashtra Goods and Services Tax Bill, 2017 (Bill No. XXXIII of 2017) published in the Official Gazette dated 12th May 2017.

(4) Maharashtra Goods and Services Tax related Laws (Amendment, Validation and Savings) Act, 2017 (Mah. XLI of 2017) published in Official Gazette dated 29th May 2017.


  1. What if I have received full MVAT amount towards flat & advance received is less…Still can I pay the full MVAT amount irrespective of advance receipt..

  2. Sir Please give me solution for following situations
    Unregistered Flat
    Agreement Value : Rs. 25,00,000
    Amount of Advance Received : Rs. 9,00,000
    VAT payable as per Circular : Rs. 9,000 (9,00,000 X 1%)
    Question : sir what is the impact after GST ,whether credit for amount paid will be received or not
    Registered Flat
    Agreement Value : Rs. 25,00,000
    Amount of Advance Received : Rs. 9,00,000
    VAT paid at the time registration : Rs. 25,000
    Question : sir how credit will be carried forward under GST

  3. in case of Registered Flat:
    Agreement Value : Rs. 25,00,000
    Amount of Advance Received : Rs. 9,00,000
    VAT collected and paid at the time registration : Rs. 25,000
    how credit will be carried forward under GST

  4. Hi Sir,

    Can you please confirm who is liable to pay 1 % VAT for a provisional booking property done in 2013. Registration of the property is not done, nor construction has started. I paid 20% as booking charges and now the builder has sent a notice to pay additional 1% VAT before 30 June or else penalty and interest would be charged at 6%.

  5. Agreement Value – 50 Lacs Date of Registration – 10/05/2017 VAT – 50K
    Suppose Advance received on 15/06/2017 is 5 Lacs, then as per new circular vat is to be payable of Rs. 5000. Then ITC can be claimed of Rs. 50,000/- or 45,000/- (i.e. 50,000-5000) under the GST regime.

  6. Hi Sir

    I have purchase a flat in Mumbai. It’s 94% complete before GST. An amount of around Rs. 41lakh is received by the builder on 15th July. But the Chq dated was 30th June. TDS on 41lakhs is also paid in July.
    Service tax is already paid in the month of June.Only VAT is remaining to be paid. Now builder is saying to pay 6% VAT on 41lakhs and that also before 1st August 2017 and now since he had not got any circular to send us he said to pay by end of August .
    We told the builder to give in writing then only we’ll do the payment, but circular is not come from the government, so once it comes he will give in writing.
    Now he sent us this Trade Cir. No. 18T of 2017.
    The builder has already brought the material before gst so why is he charging us gst. This type of flats should be considered in almost complete category and hence no gst should be applicable. The builder makes double profit and we have to suffer.
    I’ll have to pay VAT 6%?.
    If I pay VAT in this situation will i be benefited of ITC.

  7. Dear Sir,
    Please advise for the below:-
    Agreement value – Rs 56,88,000/-
    MVAT Already paid to the government – Rs 58175/- at the time of registration.
    Till 30th June 2017 – i have paid Rs. 24,00,000/- to the builder
    Please advise under the new GST regieme what is the service tax rate applicable
    and secondly what is the MVAT value now applicable.
    I have already paid MVAT at the time of registration then why i have to pay more MVAT now.

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