ADVISE ON GST FOR REAL ESTATE UNDER JDA.

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Respected Sir/M'am

Presently I'm working in a Real Estate Company (Developer) for last 5 months & this company has been incorporated in 2017 & this is their 1st project. I have some doubt in GST & the details are as follows: -

1. We are collecting amount from Customer as advance. Example - Rs.100/- has been collected from Mr A (Customer) against our Demand/intimation letter & against Rs.100/- (including Tax) we are paying GST @ 12% or 18%(as per applicability). But as a Developer we are not getting 100% of that amount, certain percentage of that amount are transferred to the Land Owner through Escrow account. So, should we pay GST on Rs.100/- or else, Please advise????

2. When hand over to be made to the Customer, who will be generate Tax Invoice through Sale Proceed?? Developer or Land Lord???

3. What will be the Tax Liability (on GST point of view) of Land Owner against receiving of certain percentage amount from Customer??

4. Wheather any Invoice will be raised by Land Owner in favour of Developer??

Please advise me briefly on the above issues & GST impact on Real Estate sector. Please advise M'am at the earliest.

Regards

Somnath Chatterjee

(Kolkata - 9051932168/7002412806)
Replies (3)
1. GST will be charge on 100/-
2. Devloper (Customer agreement to sell is with devloper)
3. No GST liability on the land owner since he is essentially selling an immovable property, share in land (Devlopment Rights) Hence, no GST. Also, this transaction in not in furtherance of business either
Thanks Sir. What about my no 4 issue. please let me know also.

NO , NOT REQUIRED , AGREEMENT IS MORE THEN ENOUGH

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