Concept of ‘deemed value’ brought into rate notification because of ‘upgrade’ of notification 11/2017 dated 28th June, 2017 from being a notification issued under section 11(1) to be the one issued under section 15(5). So, where specified, tax applies on deemed value, which is price of similar units sold to independent buyers. And where such deemed value does not apply, fall back to rules is inevitable.
Actual ‘cost of construction’ will not have any bearing on the valuation for payment of tax when the project is ‘intended for sale’ as ‘deemed value’ is made applicable to such projects.
Deemed value is ‘all in’ price and no separate tax is applicable on utility deposits, legal and registration charges, PLC, club membership, car parking, etc. But then there are transactions between the parties that occur outside their relationship of ‘Promoter-Buyer’. For example, claim for liquidated damages, modification-enhancement works (by altering scope of original works or in addition to scope of original works), complements (white goods, car, holiday package). Please take care that these may fall outside the ‘scope of 9954’ and hence will be treated as a supply on stand-alone basis. GST will apply accordingly and will be unaffected by credit-ban under 3/2019. And to determine the ‘scope of 9954’, look into RERA application and find out what was the ‘offering’ and everything outside that offering will be subject to GST independently.
Then there’s marketing fee (charged by Developer for sale of Landowner’ units) which also is an independent supply taxed separately with benefit of credit, where available. And if the marketing fee were to be remodelled as ‘amendment to area sharing’ where Developer retains a few units out of Landowner share as compensation for marketing efforts, GST requires unbundling such arrangements for it to be taxed appropriately.