Goods and Services Tax - Real Estate - ApnaComplex

Impact of GST on Co-operative Housing Society and Real Estate

Basic Introduction of GST and its Perspective as a Contractor and a Developer
GST (Goods and Services Tax) is one indirect tax for the whole nation, which is meant to be a unified indirect tax across the country on construction services and will make India one unified common market. The present structure of Indirect Taxes is very complex in India. There are so many types of taxes that are levied by the Central and State Governments on Goods & Services. It has been long pending issue to streamline and subsume all the different types of indirect taxes and implement a “single taxation” system called “GST”.

Implementing the GST will ease the compliance, uniform the tax rates and structures, remove the cascading effect of taxes levied by States & Centre, will improve the business competitiveness and will benefit everyone doing trade in some or the other form whether as a contractor or as a developer.

In the current system in India, tax is levied at each stage separately, by the Centre and the State, at varying rates i.e. 10.5% / 6% / 4.5% for service tax and different rates by different States, on the value of construction services. But under the GST system that is set to be introduced, tax will be levied only on the value added at each stage by the sub‐contractors, main contractors and developers or builders. It is a single tax collected at multiple value additions with a full set‐off for taxes paid earlier in the value chain by sub‐contractors and main contractors. It is pertinent to note that the inter credit of different taxes paid in the current regime be a service tax, VAT, CST, etc. to Centre or States are not allowed and thus becomes a part of the cost on the suppliers. Thus, under GST the final buyer / client will bear only the GST charged by the last person i.e. developer or builder or the contractor.

Structure of GST in India

In India, a dual GST is proposed whereby a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of every transaction of supply of goods and services.

The Dual GST is expected to be a simple and transparent tax with one or two CGST and SGST rates. The structure of the model law comprises of CGST Act, SGST Act and IGST Act. The dual GST model would give adequate flexibility to the States to levy taxes on a comprehensive base of goods and services at all points in the supply chain. Thus, financial liberty of the States would be maintained. GST is a consumption based tax. It is based on the “Destination principle”. GST is applied on goods and services at the place where actual consumption materializes.

GST on Co-operative Housing Societies

The Centre and the States would have parallel jurisdiction for the entire value chain and for all taxpayers. The administration of GST under the three components will be as under:

  • Central GST (CGST) – to be levied on intra state trade and administered by the Centre
  • State GST (SGST) – to be levied on intra state trade and administered by the State Governments
  • Inter‐State GST (IGST) – to be levied on inter‐State trade and administered and collected by the Centre.

To the extent feasible, uniform procedure for collection of both Central GST and State GST is prescribed in the respective legislation for Central GST and State GST.

It can be noted that IGST will not be a Tax in addition to the SGST and CGST so one should not presume that IGST is a third tax but it is only a mechanism to monitor the interstate trade of Goods and services and further to ensure that the ultimate SGST is gone to the consumer state since the GST is a destination based tax.

Impact of GST on Co-operative Housing Society as well as Real Estate Sector
Implementation of the GST law will have a positive impact on the Co-operative Housing Society and on the real estate sector with expected reduction in its tax burden. The law will single‐handedly solve many of the challenges faced by the real estate sector. Heavy taxes that are being borne in a non‐transparent manner are expected to be very transparent in GST. It is unclear what would be the rate of GST applicable on construction services, hence it would be difficult to confirm the exact impact on GST on the Co-operative Housing Society. However going by the informal discussion, it is learnt that the rate is expected to be something between 18‐20%, which is what the current rate directly and indirectly being borne by the construction sector. Besides the simplicity in taxation, GST would bring in other advantages like transparency, seamless credits, ease of business by lack of border controls, promoting economic efficiency through a destination based taxation system. Overall Construction costs would be reduced to some extent which would benefit the end consumer. Apart from the advantages, the complexities in the compliance and assessments shall also be greatly reduced as the tax laws would also be unified.

There would be lesser burden of tax on purchases of major inputs like cement and steel, as tax credits would be available for set off at various stages which are currently restricted. The restrictions on credit utilization would be eliminated, thus strengthening the credit chain in the system. If this so happens, there will be increased credits available in the procurement chain and hence better utilization of input tax costs towards output GST Liability.

Since GST may be levied on a single value, the current issue of levying tax on tax (VAT on central excise duty) is likely to be removed. Hence the cascading effect of taxes shall be removed with the resulting transparency which will significantly reduce tax evasion through more efficient transaction‐tracking methods, and improved enforcement and compliance. Hence the implementation of GST will enhance the investment in Housing Societies & real estate sectors.

It is widely expected that GST would reduce the construction cost in the hands of developer and thereby aid in reducing or at least maintaining the current level of prices in the housing societies as well as in the real estate sector.


The Uttar Pradesh Apartment Act 2010, Rules and Model Bye-Laws

Below are copies of different official documents for apartment communities of Uttar Pradesh




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Apartment Fire Safety – Safety Measures within the Complex

The need for fire management has become an integral part of every housing society, and this is especially true in a housing system where hundreds and thousands of people reside in close quarters.

Effective safety measures including actions or precautions should be adopted in a housing society in order to forestall any hazards or accidents and make sure that no residents are harmed, or even the buildings for that matter.

Fire Safety Measures in a Housing Society

Fire safety measures should be taken when a housing society building is being constructed; steps should be implemented to protect the structure while the building is standing; and general safety tips need to be taught to all residents in order to train them for emergencies.

There are some basic conditions that need to be fulfilled:

  • Your housing society buildings should conform to the local building code.
  • The upper limit tenancy within any part of the building should not be exceeded.
  • Fire suppression systems should be installed (like sprinkler systems), and fire hose reels, fire hydrants, and fire extinguishers need to be provided.
  • The residents of the housing society must be given lessons on how to use fire extinguishers and fire hose reels.
  • Fire extinguishers should be placed in easily accessible spots so that the occupants of the housing society know about their location and can easily access it at the time of need.
  • Fire extinguishers need to be checked and maintained on a monthly basis by the maintenance crew.

fire safety measures

  • Automatic fire detection and alarm systems (smoke detectors) should be installed on all floors and these will inform the occupants about the impending danger ahead of time and they will be able to evacuate the building without any mishap.
  • The maintenance team should ensure that all alarms are free of dust by regularly vacuuming over and around them. They should replace the batteries in smoke alarms regularly.
  • Proper exit signs should be installed as these will help the occupants to act quickly in case of a fire.
  • Smoke exhaust systems can be installed on every floor as they help in minimizing the accumulation of smoke in case of fire, which could be quite dangerous and life threatening.
  • Hazardous materials should be stored very carefully as they are most likely to catch fire within the building.
  • Flammable materials should be monitored within the building.
  • One of the important steps is to conduct fire drills throughout the year. Once this is done in a regular manner there will be less chaos during an emergency.
  • The housing society management can conduct fire safety education programs for children during the weekends.

Failure to meet these safety measures will significantly affect the levels of fire safety in a housing society building and can compromise on the safety of the occupants.

Tips for Residents

You can also work towards maintaining a fire safe housing society by following these small tips.

  • Don’t overload electrical systems.
  • Be careful about smoking near combustible objects.
  • Don’t store combustibles near equipments that emit heat, sparks or flame.
  • Maintain all electrical wiring in good condition.
  • Maintain your heating and cooking appliances.

Once these safety measures are followed, the housing society will be truly protected against sudden mishaps and accidents.


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ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!

Apartment Fire Safety – Basic Knowhow About Fire Escapes

With Diwali around the corner, safety measures in a housing society must be taken against all possible threats to ensure that there are no mishaps of any kind.
fire safety escape routes

Fire safety in a housing society is especially of prime importance, and fire exits must be provided in all buildings and this is mandatory.

Housing Society Fire Escapes

A fire escape is an emergency exit usually located outside a building but always as a separate entity from the main building. As the name specifies, it provides an escape route in case a fire breaks out within the housing society building or any other emergency surfaces, when the main exit is cut out of access.

Fire escapes have many levels, and they have horizontal platforms on each level (floor) that are connected to each other through ladders or stairs. These escapes are made of steel to keep leaves or snow from settling on them. They are generally made from fire resistant materials and extend from windows at every level.

The access from the inside portion of the housing society building to the fire escape is usually through a fire exit, but in certain buildings, the only access might be through the windows.

Fire escape doors are normally fitted with fire alarms in a housing society in order to prevent unauthorized people from gaining access and in order to prevent people from using the route for other purposes.

Installing and Maintaining Fire Escapes

  • If you find out that your housing society building does not have fire escapes, you can take up this issue during a resident meeting and ensure that the management committee gets them installed.
  • Every floor must have fire escapes as an alternative to staircases and lifts as these can’t be used during the time of fire.
  • The maintenance team should ensure that no objects are kept in front of the fire escape, in order to ensure that the exit route is not blocked.
  • The exit routes must be cleaned and maintained regularly by the maintenance team so that there are no problems during an emergency. This should be done on a monthly basis.
  • While installing the fire exits or escapes, care should be taken and quality infrastructure should be installed as this is a serious investment.
  • The ladders can be of chain or web type. Railings should be provided along the ladders and the fire escapes in order to prevent any falls.
  • The ladder from the first level of the fire escape to the ground floor can be fixed. A better idea would be to opt for a ladder that swings down along a flexible joint or slides down.
  • Movable fire escape ladders are preferred in order to dissuade burglars from entering the buildings through such fire escapes.

With your personal safety and the safety of your family in mind, ensure that you bring up the concept of fire safety during resident meetings so that fire escapes are installed. While moving into a housing society, ensure that the buildings have proper fire safety measures in place.


Get your Society on ApnaComplex – Today!

ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Mayuresh Park Co-operative Housing Society Live on ApnaComplex!

Mayuresh Park Co-operative Housing Society, a cozy society in Thane, Maharashtra, is now “Live” on ApnaComplex. Mr. Shailendra Gawas, committee member of Mayuresh Park Co-operative Housing Society Ltd., wrote to us on the occassion of going live:

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Apnacomplex provides transparency in Apartment Owner Association

“We at Mayuresh Park Committee were looking for centralized and cost effective software as service based solution to manage our society. After evaluating ApnaComplex for one month, we found that the application really helping us a lot to manage almost all our requirements effieciently and in productive manner. Managing Invoices, Payments, Expenditure, MOM’s etc. has made our committee members life easy. Also it brings trasperency to the operations due to which I hope all our resident members will be happy.”

Thank you Mr. Shailenra and we hope to make a difference in lives of your society members!


Ganesh Chaturthi Celebrations in a Housing Society – What You Can Do

Ganesh Chaturthi celebrations are held in every housing society annually in order to honour the birth of Lord Ganesh. This festival encompasses a variety of cultural events that have deep rooted religious meanings, which bring people together and enhance their sense of oneness.Celebrating Ganesh Chaturthi
You can make arrangements to celebrate the festival in your housing society, in order to bring together all residents. This can take an immense amount of time and effort since celebrations for Ganesh Chaturthi are very elaborate and done on a grand scale.

Ensure that you bring up the idea during a resident meeting so that you can get help from all other residents in the housing society too.

While being an amazing spectacle to witness, Ganesh Chaturthi can be both environmentally degrading and very cost ineffective. The housing society management can take the initiative to implement some of the below tips while celebrating this festival.

  • Provide Localized Immersion Spots

Instead of having scores of people from the housing society immersing idols all over the city and in a variety of water bodies, the housing society management can organize a local area where the residents can collectively gather, celebrate and finish off the festivities in an environmentally friendly manner.

The management can dig a ditch and create a central temporary water body that can be used for this purpose.

  • Arrange for the Main Idol

Housing societies usually arrange for huge idols of Lord Ganesh, and this forms an extremely vital part of the celebration. The idol can be placed in a central location so that it is easily accessible to all residents within the society.

Clay idols score over plastic ones because they’re a lot more cost efficient. Clay dissolves in water and this material is more eco-friendly as remnants from the celebration don’t stay in the water for long enough to significantly damage the aquatic ecosystem.

The housing society management must also strive to ensure that every family limits itself by having only one idol for immersion.

  • Whip Up Homemade Sweets

You can take some initiative and encourage all families to make sweets at home. You can do this during the resident meetings. This will not only help them save on money and resources, but also ensures less wastage.

Such sweets are healthier and also bring the housing society residents closer during the festival.  Sweets can be exchanged during the main puja that is conducted near the large idol.

  • Create Awareness About the Festival

Most modern children aren’t completely aware of the significance of Ganesh Chaturthi or about the various rituals that are performed. Through the management, you can hire knowledgeable speakers to talk about the festival or drama groups who can enact various mythological events related to the festival.

Celebrating such an important festival in a common stage can be a fun experience for everyone, especially the children. Once you delegate all the necessary tasks to specific members through the housing society management, you can enjoy a splendid Ganesh Chaturthi with your family and the entire community.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trail as well so that you can try before you buy!

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Citilights Liberty – a complex on Outer Ring Road on Bangalore has been using ApnaComplex for past 6 months. Mr. Ram Bhagawat, President of Citilights Liberty Owners Association says –

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Karnataka Apartment Owners Act Part Two – Contents Of Declarations And Deeds Of Apartments

While registering your apartment under the Karnataka Apartment Owners Act, you will need to be aware of the contents of the deeds and declarations involved, as this is necessary.

Not many people these days take the effort to know what works in the legal section of obtaining an apartment while registering their building under the Karnataka Apartment Owners Act, and this is not a very good sign. Having good knowledge on the legal proceedings can help you immensely in communicating effectively to your lawyer.

Learning legal information is not rocket science, as you will find out through the course of this post, as very basic facts and figures are involved.

The content that an apartment’s deed and declaration will hold has been given below.

Karnataka Apartment Owners Act Details – Declaration Contents

  • The declaration will hold many particulars, and the most important of these is the land description. The nature of the land involved will be given in a detailed manner (that is, whether the land falls leasehold or freehold categories).
  • A detailed description of the building will follow, stating the number of basements and storeys in the particular building. The number of apartments involved will also be mentioned, and the basic materials used to build the structure will be specified.
  • Details will also extensively include the apartment number of each apartment that falls under the span of the building, the number of rooms present in each apartment and the dimensions of the same, and also the common areas that the apartment has access to. This is used for identification purposes.
  • The value of each apartment is also mentioned in the Declaration, and the overall value of the property and the percentage of interest (undivided) that each resident will bear for access to the common areas in the apartment complex will also be mentioned.
  • A set of bye laws will also be attached with the Declaration during registration. In simple terms, these bye laws are more targeted at apartment associations and they will involve procedures for appointing people into the upper tier of the apartment association.
  • The Declaration will also contain the name of the person that the entire registration process in carried out under. All personal details including the residential address, the contact details and occupation will be specified.

These are the basic details that will be included in a Declaration, under the Karnataka Apartment Owners Act.

Karnataka Apartment Owners Act Details – Deed Contents

  • The Deeds will contain more or less the same content as given in a declaration, including a description of the land that the apartment complex or building is set in.
  • The Deeds will also contain information that can be used to establish the identity of the particular apartment, including the apartment number as stated in the declaration.
  • The Deeds will contain the percentage of interest (undivided) pertaining to the common areas in the apartment.

These are the basic details involved in a Deed under the Karnataka Apartment Owners Act. Any real estate lawyer will be able to smoothly take you through the procedures involved without any issues.


This article aims at collating and providing information for benefit of ApnaComplex customers and blog readers. While ApnaComplex has taken every care to ensure the information is accurate, we suggest to please use it only as a guidance for further discussion and action with help of relevant professionals. If you need professional advise on this topic and any other property related matters, please send your request through our contact us form. You may post your questions/inputs in the Comments section below and we will try and get them answered through relevant subject matter experts.

Karnataka Apartment Owners Act Part One – Apartment Association And Registration of Deeds, Declarations

In order to buy your own apartment and become a member of the apartment association, there are a few steps and legal processes that you’ll need to know about.

The Need

It’s wise to be well versed in all the legalities involved while buying an apartment in the state of Karnataka. Although a real estate lawyer can take care of the half the issues in this regard for you, being aware of your rights and your position in the entire setting can help you make better and faster decisions. There are many deeds and declarations that you will have to go through while buying an apartment in a city like Bangalore.

Talking to the members of your apartment association can help you get a clear idea. Senior members of the apartment association will guide you through the legalities involved.

The Karnataka Apartment Owners Act 1972

This act deals exclusively with apartments that are residential in nature. Apartments are termed as transferable properties that are also heritable under this act. In order to register the apartment complex under this act, all apartment owners will need to come together and sign the particulars, which can be quite an ordeal.

Know your State Rules

Know your State Rules

The Registration Procedure:

Given below are a few facets that you’ll need to know while getting your apartment registered under the Karnataka Government:

  • The Declaration should be registered properly under the Registration Act of 1908.
  • The deeds involved with the house will also need to be registered with the Registration Act of 1908.
  • The floor plan of the particular building should also be duly registered under the Registration Act of 1908.
  • Along with the registration of the building’s Declaration, extensive details about the building should also be filed along. These details should include the building’s layout, the location of the building, and the number of the particular apartment. The apartment’s dimensions will also have to be accurately mentioned in the details. This is very important.
  • The building’s name should also be specified in the details provided. If the particular building has no specific name, it should be mentioned that the building does not have a name.
  • All these above mentioned details should be properly verified by an architect, who will need to release a statement mentioning that the specified details are correct.
  • This statement should then be run through some local authorities under whose jurisdiction the particular building falls, who will, in turn, verify the same and approve it.
  • If the submitted plans do not include the verified seal of a practicing architect, then the plans should have an amendment attached to them when they are submitted. This amendment should certify that the floor plan mentioned in the documents, the name of the house specified and the dimensions of the building are all accurate and true. This is also very important.
  • The registrar or sub registrar will then register the declaration and deeds involved under the Karnataka Government through an act that was made effective in 1908.

This is the general registration procedure involved in registering an apartment and the apartment association under the Karnataka Government.


This article aims at collating and providing information for benefit of ApnaComplex customers and blog readers. While ApnaComplex has taken every care to ensure the information is accurate, we suggest to please use it only as a guidance for further discussion and action with help of relevant professionals. If you need professional advise on this topic and any other property related matters, please send your request through our contact us form. You may post your questions/inputs in the Comments section below and we will try and get them answered through relevant subject matter experts.