Gst in joint venture land devlopment agreement

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 In a joint venture Land Development project, for construction of residential units ( 50% : 50%).( assume there are 10 units to be made , selling rights of Nos.5units  with the Builder and  Nos.5 unit with the land owner ).

 Accordingly Builder makes all purchases, renders all services at site ,gets all purcahse /services bills in the name of  Builder, with input GST on construction activity of all units  ,

 Now at the time of selling , The Builder has input bills of all residential units (10 Nos.in this case), while selling his predefined resi.units(5 Nos.in this case) to third parties, can Builder  get setoff of GST all input (10 units)on part units (5 units)while  selling ?

can land owner charge entire GST  on his share built units, from third parties ( Nos.5 in this case)? as per joint venture land development agreement?

if yes , is it necessary for land owners to be registered under GST? and to file GST returns, but there is No materialistic input by him, what input GST that he has to show?

Replies (2)
No GST liability on the land owner since he is essentially selling an immovable property, share in land. Hence, no GST. Also, this transaction in not in furtherance of business either

Whereas in the case of the builder, there are 2 transactions:
1. Construction - The sale consideration is equivalent to value of units obtained - GST applicable

2. Sale of Residential Units - GST applicable if advance received before completion. Otherwise its a sale of an immovable property not liable to tax.

what about booking amount received to  LAND owner for flats / RH of his  share  ,

before completion of the building ( in above case out of 10 flats - 5 belong to land owner & Builder each)

 No prudent person can keep it, without agrrement to sale  till completion certificate from authrorities  is received .

 in that case does landownercan ask GST and collect and retain that GST amount  with himself


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