GST calculation for multi floor commercial building delivered by builder as part of JDA

Each floor rate to be applied for land owners share for each floor. that will be correct valuation . Similar rate. No decision. lullakishor @ gmail.com for any query on real estate.

About GST on joint development agreements (JDA) for commercial buildings. 😊

the GST on JDA is charged at 18% on the value of the contract. A JDA is a contract between a real estate developer and the landowner to build projects on the latter’s land. As per the contract, the landowner provides the land, and the developer manages the construction side of the project.

The value of supply for GST purposes should be determined as per Rule 27 of the Central Goods and Services Tax Rules, 2017 read with Section 15 of the CGST Act, 201723. The value should be based on the actual transaction value or cash consideration received. The time of supply is the date of transfer of possession or right in the constructed complex, building or civil structure, to the person supplying the development rights by entering into a conveyance deed or similar instrument2.

Therefore, the GST to be paid by the landlords should be calculated based on the actual value of the delivered property, not the per sqft price of the ground floor. The actual value may vary depending on the floor, location, amenities, and other factors that affect the market price of the property.