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Land purchased being paid with consideration in kind

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This query is : Resolved

Virendra Shah (Querist)
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28 November 2017 Our client has purchased a land, and, the owner of land is ready to accept 5 Flats from the complex being constructed as consideration. (Total Flats being 10, 5 to Owner of land, 5 Kept to self for Sale)
There is no cash being paid as consideration & land as per rules, is not taxable under GST but residential dwelling construction services are.
Can anyone please explain how will it be treated under GST?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 November 2017 12% GST applicable on builders sale of 5 flats including land cost.
18% GST applicable on land owner's 5 flats excluding land value.
When land owner sells the flat 12% GST applicable including land value. ITC can be claimed on 18% GST paid to builder.

Virendra Shah

Virendra Shah (Querist)
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28 November 2017 Thank You, Sir. All doubts cleared.

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