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Joint Development

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Sameer Sheikh

Accountant

53 Points Posted on 28 August 2023

If 3 partners come together and purchase a land give it to Developer and take 37% as there share....Do GST is Applicable to Land Owner...
IF No which Section....IF Yes which Section

Replies (3)

Quick Summary

This discussion explores whether landowners involved in a Joint Development Agreement (JDA) are liable for GST. It clarifies that transferring development rights typically incurs an 18% GST, calculated based on CGST Rule 27 and Section 15 of the CGST Act. The applicability of the Reverse Charge Mechanism (RCM) since April 1, 2019, for JDAs is also a key point, regardless of whether the project is residential or commercial.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 28 August 2023

For the transfer of development rights by the landowner, the landowner needs to pay 18% GST. The value on which GST is paid is decided per CGST Rule 27 and Section 15 of the CGST Act

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 28 August 2023

After 1/4/2019 as per notification RCM applicable in case JDA (Joint Development Agreement ) , so please inform , Is it residential project or Commercial project or both ? . or take others opinion as well .