Gst of Land owner

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This query is : Resolved

Malay Sutradhar (Querist)

28 February 2018 One of my client gave his land to builder to construct flat on condition that the builder will provide 2 flats to land owner. Now the builder is asking land owner to give Gst. The builder handed over the flat in last month and the agreement between land owner and builder was made 3years back. Please let me know whether the land owner will be liable to pay the Gst or not.

CA Ashish Agrawal

CA Ashish Agrawal (Expert)

28 February 2018 In your case the date of agreement is irrelevant, the time of supply shall be considered when the invoice for the service is raised (if invoice is raised within 30 days of completion of work) in any other case the time of supply shall be date of completion of work. If the work is completed after 1st July i.e. the date when GST was made applicable in India, then you have to pay GST as per my opinion.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

30 October 2026 Under Notification 4/2018-CT(R), tax on flats given to a landowner in exchange for land arises when possession is transferred, so possession after 1 July 2017 attracts GST; the builder is the supplier liable to pay it (recovery from the landowner depends on the agreement), and the landowner can take credit only if he sells those flats before the completion certificate.

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