Hello Experts
Need guidance on GST applicability if the land is given under GPA to Builder to develop with residential apartment on 50:50 sharing basis. Landlord will retain the residential flats for himself and is not interested in the sale of flats.
The Supplementary Agreement was completed and registered with sub-registrar in April 2017 ie before GST was implemented. The possession of property would be given to landlord in January 2018 with occupancy certificate (currently it's under construction).
Please advise do we (landlord) have to pay GST to the Government for getting these new flats under JDA ( joint development agreement) from Builder.
Builder advised that we need to pay 12% GST on the flat sale price ( equivalent) even if the flats are retained by us (no sale is involved in our share of flats).
Would really appreciate if a proper suggestion is given on the above context on GST to be paid by us (landlord) or not. Thanks.
Regards
Nitin
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GST Liability on Landlord under JDA with Builder
Replies (7)
Dear Sir,
on the above issue may please clarify
Yes, GST liable over owner's flat shares as development services provided by builder.....
If you are not selling than no GST on landowner.It is not service to landowner but service to builder himself.
See HIGH COURT DELHI case RAJINDER BALI versus SABH INFRASTRUCTURE LTD 8/3/18 on VAT
Thank you very much for clarifying that GST Liability is not applicable to owners under JDA for self possession flats. Thanks.
Hello Sir
Can you please share any GO or any notification of government agencies confirming that GST needs to be borne by builder in JDAs.
Out builder is insisting us to make the GST payment in next 2-3 days, request you to please assist us on how to manage this scenario. Thanks in advance.
Regards
Nitin
7569242233
Please contact Mr Venugopal on venu @ vav.ca. if you want.
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