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JDA - GST input tax credit sharing between developer and landlord

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Clarifier

Landlord

63 Points Posted on 21 October 2023

As part of a JDA to construct a structure, between landlord and developer, the developer bears the cost of the entire construction material and delivers the construction.

From the perspective of GST input tax credit, does the developer get to keep the entire input tax credit for 100% of construction material ordered or does landlord have right to use 50% of that cost for his input tax credit respective to his share in the JDA ?
If landlord has not sold his share of the constructed property delivered by developer, can he still take benefit of input tax credit while paying GST for his share ?

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Quick Summary

This discussion explores how Goods and Services Tax (GST) input tax credits are shared in a Joint Development Agreement (JDA) between a landlord and a developer. Specifically, it questions whether the developer, who bears the full cost of construction materials, can claim the entire input tax credit, or if the landlord is entitled to a portion based on their share in the JDA. It also touches upon whether the landlord can claim input tax credit on their share of the property even before selling it.