JULY 2017
ISSUE 5
MHG NEWSLETTER
Shri. Suresh Sahu, MD
SUPREME ENGICONS
(INDIA) PVT. LTD
Government of India enacted the Real
Estate (Regulation and Development) Act
2016 on 26th March 2016 and all provisions
shall come into effect from 1st May, 2017.
Maharashtra Real Estate Regulatory
Authority (MAHARERA) established vide
notification No. 23 dated 8th March, 2017.
Purpose:
1. An act to establish The Real Estate
Regulatory Authority for regulation &
promotion of the real estate sector.
2. To ensure transparency in projects.
3. To project the interest of consumers in
the real estate sector & to establish an
adjudicating mechanism for speedy
dispute redressal.
4. To provide proper information about the
builder.
Why this act is required?
REAL ESTATE REGULATORY
AUTHORITY (RERA).
1. Real estate & the housing sectors
were highly unregulated sectors.
2. Lack of transparency in projects.
3. No proper information about the
builder.
4. Lack of remedies available to the
buyers.
Silent features: This law vests authority
on the real estate regulator to govern
both residential and commercial real
estate transactions.
This law makes it mandatory for
developers to post all information on
issues such as project plan, layout,
government approvals, land title status,
sub-contractors to the project, and
schedule for completion with the State
Real Estate Regulatory Authority
(RERA) and then in effect pass this
information on to the consumers.
The current practice of selling on the
basis of ambiguous super built-up area
for a real estate project will come to a
stop as this law makes it illegal. Carpet
area has been clearly defined in the law.
The maximum jail term for a developer
who violates the order of the appellate
tribunal of the RERA is three years with
or without a fine.
 Currently, if a project is delayed, then the
developer does not suffer in any way.
Now, the law ensures that any delay in
project completion will make the
developer liable to pay the same interest
as the EMI being paid by the consumer to
the bank back to the consumer. The
developer cannot make any changes to
the plan that had been sold without the
written consent of the buyer. This puts
paid to a common and unpopular practice
by developers to Increase the cost
GROUP PHOTOGRAPHS OF GUESTS AND FACULTIES DURING THE SEMINAR
Shri. Piyush Goyal, Minister of State-
Independent Charge had explained the GST in
very simple way: He further added that It is
destination based tax on consumption and
services. It is proposed to be levied at all
stages right from manufacturing up to final
consumption with credit of taxes paid at
previous stage available as setoff. In a
nutshell, only value addition will be taxed
and burden of tax is to be borne by the final
consumer.
Taxable Person: Taxable Person means a
person who is registered or liable to be
registered under GST Act. A person who has
obtained or require to obtain more than one
registration, whether in one State or more than
one State, Shall in respect of each such
registration, be treated as distinct person for the
purpose of this Act.
of projects. Lastly, every project
measuring more than 500 square
meters or more than eight apartments
will have to be registered with the
RERA. The law mandates every builder
to keep 70% of collection from every
project in separate bank account. In a
schedule bank, no Co-operative Bank
withdrawal of money will be after
certification by monitoring committee
consists of Architect, Engineer, and CA.
SHRI. PIYUSH GOYAL, MINISTRY OF STATE
INDENPEDENT CHARGE, ADDRESSING
AUDIENCE.
Advantages of GST:
1. Matching of Invoices.
2. Single Tax Compliance.
3. Easy to sell because Single Price.
4. Reduction in Prices.
SHRI. SURESH SAHU ADDRESSING THE
AUDIENCE AND ENLIGHTING ABOUT RERA.
A high level Seminar was organized
by SUPREME FOUNDATION in
association with The Celebration
Sports Club at Lokhandwala
Complex, Andheri (West), Mumbai
400 053. on 25th June, 2017 attended
by (L to R) Lion Vinod Harisingani
(Structural Engineer), Shri. Suresh Sahu
(PMC), Shri. Hemant Nair (Secretory of
THE SNLCCHSA LTD.), Adv. Ameet
Mehta (Partner, SOLICIS LEX), Shri.
Piyush Goyal (Hon. Minister of state
Independent Charge), Dr. Bharati
Lavekar (Local MLA), Shri. P. S.
Chandhok, Shri. Yogiraj Dabhadkar
(Local Corporator), Shri. Veeresh Shah
(Chartered Accountant).
Invoice under GST for Co-op
Soc:
1. Signature of office bearers or
Authorized Person
2. Name , Address and GST No.
of Society
3. Bill No. containing alphabet or
numericals or special
character hyphen or slash with
unique F.Y.
THE 4. Date
5. Name & Address of flat owner
6. Service Accounting Code
7. Description i.e. Maintenance
8. Total value of Supply of
service
9. Rate of taxes (CGST & SGST)
 CA Veeresh Shah had explained
about GST such as:
Criteria for GST:
All Over India (Except Special
Category States)
Aggregate Turnover Exceeds
Rs. 20 Lakh
Special Category State :
Aggregate Turnover Exceeds -Rs.
10 Lakh
Special Category State : Arunachal
Pradesh, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura,
Himachal Pradesh, and Uttarakhand
Taxability: 1. Annual maintenance
collection of a society is above Rs. 20
lacs. OR Rs. 5,000 per month per
member.
2. Composition Scheme not allowed.
3. GST is not applicable on property
tax, non-agricultural land tax. Sinking
fund/ Repair fund may attract GST.
What is the applicable GST rate?
Recently GST Council Decide 4 GST
Rates Slabs for India, i.e GST Rates
in India is 5%, 12%, 18% &
28%.Combined GST rate is being
discussed by the Government. After
the total GST rate is arrived the central
and state will decide on the CGST and
SGST rate.
ARCHITECT PREM NATH ADDRESSING MEDIA
DURING THE SEMINAR
SHRI. VEERESH SHAH ADDRESSING THE
AUDIENCE ABOUT GST
GST MIGRATION / REGISTRATION
DOCUMENTS:
1. Service Tax Registration Certificate
(in case of Migration)
2. Society Registration Certificate
3. Photograph in JPEG format (Office
Bearers)
4. Permanent address of Office
Bearers (E.g. Aadhaar Card copy)
5. PAN Copy of Society and office
bearers
6. Resolution/Authority Letter for office
bearers
7. First page of Bank Statement along
with Branch address and IFSC code.
8. Address proof of the Society
9. Digital Signature Token.
10. New Registration/Migration in GST
will commence from 25th June.
Real Estate Agent Registration:
Registration Mode: Online through
MahaRERA portal which was live from
1st May 2017.
Fees: If the applicant is an individual,
then registration fee is Rs. 10,000. If
applicant is other than an individual,
then the fee is Rs. 1 Lakh. The mode of
payment is NEFT or RTGS System or
any other digital transaction mode.
Jurisdiction: Registration shall be
valid only for Maharashtra
Validity: 5 years
Benefits of GST Bill implementation:
The tax structure will be made lean
and simple.
The entire Indian market will be a
unified market which may translate
into lower business costs. It can
facilitate seamless movement of
goods across states and reduce the
transaction costs of businesses.
It is goods for export oriented
businesses. Because it is not applied
for goods/services which are exported
out of India.
In the long run, the lower tax burden
could translate into lower prices on
goods for consumers.
The Suppliers, manufacturers,
wholesalers and retailers are able to
recover GST incurred on input costs
as tax credits. This reduces the cost
of doing business, thus enabling fairer
prices for consumers.
It can bring more transparency and
better compliance.
Number of departments (tax
departments) will reduce which in turn
may lead to less corruption
More business entities will come
under the tax system thus widening
the tax base. This may lead to better
and more tax revenue collections.
Companies which are under
unorganized sector will come under
tax regime.
LARGE NUMBER OF SOCIETY MEMBERS
BENEFITED THROUGH THE SEMINAR
Penalties: If any real estate agent fails
to register, he shall be liable to a
penalty of ten thousand rupees for
every day during which such default
continues, which may cumulatively
extend up to five per cent of the cost of
plot, apartment or buildings, as the
case may be, of the real estate project,
for which the sale or purchase has
been facilitated.
Real Estate Project Registration:
Registration Mode: Online through
MahaRERA portal which was live from
1st May 2017.
Fees: Rs. 10 per sq. m of Land Area,
subject to minimum Rs.50, 000 and
maximum Rs. 10 lakhs only. The mode
of payment is NEFT or RTGS System
or any other digital transaction mode.
Ninety Day Window: All promoters of
Ongoing Projects have ninety day
window for completing registration of
Projects. Post which promoter shall
not advertise, market, book, sell or
offer for sale or invite persons to
purchase in any manner any plot,
apartment or building.
Project Withdrawal: The promoter
may apply for withdrawal of application
for registration of the real estate project
before the expiry of the period of 30 days
of its submission and before MahaRERA
has approved registration. Rs. 5000
shall be retained as administrative
charges, in withdrawal cases.
Penalties: If any promoter fails to
register as per Act, he shall be liable to
a penalty which may extend up to ten per
cent of the estimated cost of the real CLUB MEMBERS WELCOMING LION VINOD
estate project. On continued violation, HARISINGANI (STRUCTURAL ENGINEER)
he shall be punishable with Filing of Complaints:
imprisonment for a term which may 1. Any aggrieved person may file a
extend up to three years or with fine complaint with MahaRERA or the
which may extend up to a further ten per adjudicating officer, as the case may
cent or with both. be, with respect to any registered
real estate project, for any violation
or contravention of the provisions of
this Act or the rules and regulations
made there under. The Authority
shall establish an adjudicating
mechanism for speedy redressal of
such complaints.
2. Any person aggrieved by any
direction or decision or order made
by MahaRERA or by an adjudicating
SEMINAR ATTENDED BY LOCAL MLA DR. officer may file an appeal before the
BHARATI LAVEKAR, CORPORATOR YOGIRAJ Appellate Tribunal.
DABHADKAR.

Questions & Answers

Que. Why fuel such as Petrol & Diesel is not included in GST????
Ans. All the states are not agreed in majority to include Fuel in the said bill. But it is possible in future if
agreed by all.
Que. Does the definition of Promoter include public bodies such as Housing Board, etc. in RERA????
Ans. The Act covers all bodies (Private & Public) which depends real estate projects for sale to the General
Public. The term Promoter which includes both private & public real estate promoters.

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