GST on landowners in a JDA

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In a JDA, GST on construction services provided by the developer to the landowner is generally applicable. A 5% GST demand may be valid depending on the project. Most landowners cannot claim ITC. GST liability often arises around OC/completion milestones, and documentary proof should be requested.

JAGDISH PATTNAIK

JAGDISH PATTNAIK (Querist)

04 June 2026 Hi we are in a JDA with a developer where we will our share of flats from the land ...in our jda nothing related to GST is mentioned now suddenly developer is asking to pay 5 percent GST for construction services is the claim legitimate? And can we offset it ?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

05 June 2026 * GST on construction services provided by the developer to the landowner in a JDA is generally applicable.
* A demand for 5% GST may be valid, depending on the project and GST scheme.
* Most individual landowners cannot claim ITC, so the GST becomes a cost.
* The absence of a GST clause in the JDA does not by itself eliminate the GST liability, though it may affect who ultimately bears the tax contractually.

JAGDISH PATTNAIK

JAGDISH PATTNAIK (Querist)

06 June 2026 And what time it needs to paid after OC ?and should we as him as proof?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 June 2026 The time of payment is based on the invoice issued by developer (with GST charged). The tax bill itself is the proof. If you are GST registered the same will reflect in your GSTR.

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