MHADA seeks clarity on flat rates
In order to get clarity on the exemption of Goods and Services Tax (GST) on Maharashtra Housing and Area Development Authority (MHADA) flats, officials are seeking legal opinion to determine the final cost of flats that are included in this year’s lottery. Senior officials said that there will be marginal changes in the overall rates.
The authority will be conducting its seventh annual lottery this year. There are nearly 800 flats in the lottery. The prices have not been declared as yet, however, officials said that the advertisements for the lottery will be out in the next 10 days. Property buyers are currently eyeing this year’s MHADA flats and are especially fearing the 12 per cent surcharge to be added on the original cost of the flats under GST. A senior official, however, said that the flats this year are most likely to be exempted from GST. He said, “The tax will be applicable to flats that have occupation certificates. The flats that are in ready-possession will be free from this levy.” However, he added that the prices of application forms of the lottery would include the tax charges. MHADA charges Rs 300 for application forms and with the inclusion of GST, the prices will be Rs 336.
Another official added that all the flats have an occupation certificate because of which it is most likely that there will be any changes in the original prises of the flats. “We have registered all our projects with the Real Estate Regulatory Authority website. In fact, MHADA has the most number of projects registered on RERA.”
The newly-implemented rule restricts developers from giving advertisements of their project that are not registered on the website.
According to sources, around 68 flats will be added in the lottery which would be given by Mumbai Repair and Redevelopment Board. A senior official said that most of these flats are located within the city because of which it will be some of the prime flats of this year’s lottery. The flats of this year’s lottery will be from places like Goregaon, Kandivali, Pratiksha Nagar, Sion, Powai and Kannamwar Nagar at Vikhroli.