GST: TIME OF SUPPLY IN CASE OF JDA (JOINT DEVELOPMENT AGREEMENT)

WHAT WILL BE CONSIDERED TIME OF SUPPLY IN CASE OF THE FOLLOWING:

 CASE 1. TRANFER OF TDR BY LANDOWNER TO DEVELOPER

CASE 2. TRANFER OF FLATS BY DEVELOPER TO LANDOWNER

Replies (12)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) time of supply for Joint Development Agreements (JDA). It differentiates between the time of supply and the time of taxation, noting that taxation often hinges on the completion certificate or first occupation date. The conversation also details the GST implications for transferring TDR (Transfer of Development Rights) by landowners to developers, including exemptions for residential projects sold before completion and reverse charge mechanism (RCM) for unsold units.

1. TRANFER OF TDR BY LANDOWNER TO DEVELOPER

 

THEN WHAT ABOUT THE APPLICABILITY OF  NN 6/2019 CENTRAN TAX?

Read the words....

"........ as the registered persons in whose case the liability to pay central tax on, - ..........  

..... shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier. ...... "

RIGHT SO BASED ON THIS POINT OF TAXATION IS DATE OF CC AND NOT ON DATE TDR IS TRF BY LANDOWNER VIA JDA

I THINK THERE IS SOME CONFUSION:

IN MY ORIGINAL QUESTION : I NEED TO KNOW TIME OF SUPPLY FOR CASE 1 & CASE 2

The confusion is in query... The time of supply is not always same as time of taxation.

Time of taxation is date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier.

IN BOTH THE CASES I MENTIONED ABOVE?

As per Notification 4/2019 CT (Rate) inserting entry no. 41A Notification 12/2017 CT(rate) : That Transfer of TDR from landowner to developer in relation to residential project are FULLY EXEMPTED TO THE EXTENT OF ALL RESIDENTIAL APARTMENTS WHOCH ARE SOLD PRIOR TO COMPLETION CERTIFICATE OBTAINED. .
To the Extent of Unsold apartments in the project, PROPORTIONATE TAX would have to paid on the VALUE OF TRANSFER OF SUCH RIGHTS (TDR) BY DEVELOPER under RCM .

So sh Dhiraj Lal ji is correct. GST On TDR before completions is exempted & After Completion it is taxable on the value of unsold flats .

Formula prescribed to calculate RCM on TDR :
GST on TDR X Catpet Area of Unbooked apartments in project X 18% ÷ Total carpet area of apartments in project.

Or
Value of residential Apartments Remaining Un-booked X 5%

So value computed as per above the value is lower is considered .
Sir @ pankaj ji
Very well explained . 🙏
You are welcome dear

For commercial project not sold before cc. What is tdr percentage? Whether it's eligible

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details