Funds for tenants in redevelopment plan to attract GST: AAR (Maharashtra)

In its recent order, the Authority for Advance Rulings ( Maharashtra State) has held that compensation received by a tenant, covered by a redevelopment plan, for alternative accommodation during construction and any additional compensation for delayed possession of new premises will be subject to GST. The GST at 18% will have to be borne by the developer. This ruling may prompt developers to facto…