Date of liability w.r.t to JDA entered in pre-GST regime

CA Monika Motta | Last updated: 09 April 2020

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This article examines the tax implications for Joint Development Agreements (JDAs) initiated before the GST regime but completed during it. It discusses whether Service Tax (ST) or Goods and Services Tax (GST) applies to construction services provided to landowners. While an advance ruling suggested GST is applicable upon possession transfer, this analysis argues that transitional provisions mean ST should apply to services rendered before GST, with the liability date being the JDA entry date.

Introduction: Real estate is an important sector of the economy and Joint Development Agreements (hereinafter referred to as JDA) forms one of the fundamental parts of such sector. JDA is an agreement entered between the landowner and the developer wherein the landowner would provide the right to the developer to develop the land, in return for the construction services to be provided by the developer. Let us analyze a situation wherein such JDA was entered in the service tax regime (herei

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About the Author

CA Monika Motta

Partner

Qualified in the year 2018 and worked as a Manager heading the consultancy division at a reputed firm for 4 years and Partner at firm Bhagchandani Associates.Regular attendee and contributor at GST Study circle of ICAI, taken seminars on GST ITC and compliance. Also contributed to reference books on GST for real estat ... Read more

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