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GST on sale of joint property.

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sukhwani keyur

351 Points Posted on 19 October 2021

Three person have joint property. Now they want to construct flats on it and want to sell by forming partnership firm. So will the firm pay GST on sale or they individually have to pay register under GST ?

Replies (3)

Quick Summary

Three individuals jointly own property and plan to form a partnership firm to construct and sell flats. The discussion explores whether the partnership firm or the individuals are liable for GST on the sale. It delves into the concept of Joint Development Agreements (JDAs) and how the law views individuals and partnership firms as distinct entities. If property is sold before occupancy, individuals may owe GST but can claim credit for tax paid to the firm. The query also touches upon whether JDA provisions apply if the property is contributed as capital to the firm.

CA ABHAY GUPTA

Practice

1639 Points Posted on 19 October 2021

Three person and when they form partnership firm then concept of JDA will come in limelight as individual and partnership firm both are distinct person in the eye of law, thus individual give their land to partnership firm which will provide construction services to individuals and charge service tax on it, if individual sold their property before oc or first occupancy then the individual needs to pay GST but the good part is that they can take credit of GST paid to partnership firm...