Gst on flats allocated and compensation given to relatives

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Satish Kavitake

296 Points Posted on 15 March 2020

A person having share in ancestral plot of land and now he want to develop a land and want to build a residential projects
And for that he purchase shares in that plot of land from his relatives. Against purchase he paid compensation as well as gives 4 flats to his relatives

In such case, who will pay gst on transfer of such flat to his relatives
And similarly whether is there any gst applicable on compensation paid to his relatives and if yes, who is liable to pay gst

OC not yet received

he is not going to receive any consideration as he is not going to receive any consideration against flat sold to his relatives
o what sales to be considered in the books for such flats allocated

pl suggest

Replies (2)

Quick Summary

This discussion explores the Goods and Services Tax (GST) implications when developing ancestral land. It specifically addresses who is liable for GST when flats are allocated to relatives as part of a land purchase agreement, and whether GST applies to compensation paid to them. The consensus suggests the developer is liable for GST on these transactions.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 16 March 2020

"A person having share in ancestral plot of land and now he want to develop a land and want to build a residential projects And for that he purchase shares in that plot of land from his relatives. Against purchase he paid compensation as well as gives 4 flats to his relatives In such case, who will pay gst on transfer of such flat to his relatives."

Liability arises over the developer, so he should collect it from other land owners and pay it to treasury.

"And similarly whether is there any gst applicable on compensation paid to his relatives and if yes, who is liable to pay gst."

Same as above, the value of supply increases to that extent.