we are getting our old
bungalow redevelop by a builder.He has offered us free flats and some cash consideration which will be paid at the time of agreement.Is GST applicable on cash consideration ? if yes then who will pay that and when ?
7 Replies
Pankaj Rawat
(GST Practitioner)
(55062 Points)
Replied 17 September 2018
So there might be 2 scenario in case of builder pay you 11 lacs
1. if he pays you for his share in land then no GST will be applicable , the schedule III come into force selling of immovable property/Development Rights .
2. if it consider it as construction cost then GST will be applicable .
Note : Builder cannot pay cash 11 lac , the income tax not allow him to do so.
1. if he pays you for his share in land then no GST will be applicable , the schedule III come into force selling of immovable property/Development Rights .
2. if it consider it as construction cost then GST will be applicable .
Note : Builder cannot pay cash 11 lac , the income tax not allow him to do so.
Sandhya Lawate
(47 Points)
Replied 17 September 2018
he is paying the amt by cheque.My query is wether GST is applicable on that consideration amt then who should pay that GST amt , Me or builder and when to pay?
Pankaj Rawat
(GST Practitioner)
(55062 Points)
Replied 17 September 2018
YES THE BUILDER IS LIABLE TO PAY GST
Sandhya Lawate
(47 Points)
Replied 17 September 2018
our builder say you take the GST number ,I will give you the GST amt and you pay the GST .Is this the right entry ?Why he is involving us in that transaction?
Pankaj Rawat
(GST Practitioner)
(55062 Points)
Replied 17 September 2018
NO YOU ARE NOT LIABLE FOR ANY GST.
GST IS LIABLE TO BE PAID BY THE BUILDER ON THE SHARE OF THE LAND OWNER, ASLO GST IS LIABLE TO BE PAID WHEN THE POSSESSION OR RIGHT IN THE PROPERTY OF SAID FLATS ARE TRANSFERRED TO THE LAND OWNER BY ENTERING INTO A "CONVEYANCE DEED" OR ALLOTMENT LETTER
YOU HAVE JUST TRANSFER DEVELOPMENT RIGHTS TO BUILDER WHICH IS NOT SUPPLY AS PER SCHDULE III, SO YOU ARE NOT LIABLE FOR ANY GST
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