Site owner has to pay GST or not

This query is : Resolved

YELLANKI RATHNAGIRI (Querist)
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18 March 2020 Mr. X is a builder

He taken land on 01 MAY 2020 from Mr.’A’ on development agreement

In development agreement 8+2 flats to be constructed by builder with own cost, 8 flats can be sold by builder and 2 flats to be handover to Mr.A who is site owner

Builder will collect 1% or 5% GST on 8 flats (based on GST conditions)
Doubts
1. What about GST on remaining 2flats
2. Who will collect GST
3. Who has to pay GST
4. What is the GST rate for this 2 flats
5. Can input be taken by Mr.X If Mr.X has to pay GST on 2 flats

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 March 2020 Collect 5% GST in case it will not fall under affordable housing.
1 Remaining 2 flats 18% GST applicable on construction cost excluding land.
2 X has to collect GST.
3 A has to pay GST to builder.
4 18% on construction cost.
5 yes input can be taken.

YELLANKI RATHNAGIRI

YELLANKI RATHNAGIRI (Querist)
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18 March 2020 Thank you very much Sir

Here I have few doubts
A) Is there any Evidence or Notification to collect GST from site owner @18% if yes please provide?

B) What is the construction value?

1. Construction cost per square feet is mentioned in development agreement (at Sub Register Office)
or
2. We have to get certificate from Authenticated person like GST officer or Chartered Account or Civil Engineer
or
3. Cost is taken on proportionately (because builder will construct all flat at one time they do not maintain separate books for site owner flats
or
4. Books must be prepared separately to get construction cost (for Owners portion)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 March 2020 A see the link.
https://www.mastersindia.co/gst/gst-on-joint-development-agreement/

B 3. Cost is taken on proportionately (because builder will construct all flat at one time they do not maintain separate books for site owner flats.

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