Gst on joint development agreement for plotted development

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This query is : Resolved

Gururaj R (Querist)

04 November 2018 Developer entered into a joint development agreement for plotted development and the developer gets 60% share. Project is still under development and the developer will not sell the plots until the project is completed. Land Owner is not registered under GST. No construction activity (construction of house) is involved. Just vacant plots will be sold by developer after the project is fully completed.

In this scenario, what is the impact of GST on developer
a. Is developer liable to pay GST, if yes on what amount.
b. When is the GST to be paid.

Please advice.

Rajnish Singh

Rajnish Singh (Expert)

08 November 2018 here are two condition of supply of service.
one - land owner transfer the liability to sell the plot via legal documentation , which attract GST.
second - developer will sell the plot to end user which attract GST.

time of payment to GST
there are written agreement between landlord and construction company. when you pay sum to land lord that time you have to pay GST @18%. if land lord is not registered in that case you have to pay liability and take input.

second - when you sell the plot to user you will pay gst.

assessble value should be as per contract.

if you have any query you can ask 9716406865

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