If the land owner gets 50 % of Flats (3 out of 6) from Developer, (as per Dev.Agreement / JV), and further as per the same, land owner sales those 3 to different home buyers , who is entitled to get GST (either 12 % or 18%)from those home buyers, either Land owner or Developer? Further is land owner is liable to fine GST returns? as developer will be showing / filling his GST returns on purchases of building materials and services on ENTIRE 100% or 6 flats
Here treatment in both the cases as JV and land owner as investor will differ.
In case of JV, it will be treated as AOP.
While as just land owner receiving flats in lieu of land........ land owner cannot levy GST. In this case only developer will charge GST over 3 number of flats, which he sells and the services provided to land owner.
As the ENTIRE SERVICES were rendered alongwith EXPERTISE & EXPENSES by DEVELOPER, but in case SELLING of balnace 3 flats, he has NO ROLE to PLAY (may be as consentor if required by banks), so can land owner ask / collect GST while selling his(ENTILTED) 3 flats , AS There were NO EXPENSES done by LAND OWNER, will he be FILLING GST returns ? how much % GST land owner has to PAY to the authority, secondly GST paid for services and purchase of materials for 6 flats has to be matched by DEVELOPER for GST collected from home buyersof 3 flats (his entitled share). there is ambiguity , that is what I feel..EXPERTS comment in such conditions are INVITED
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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YOGESH KAPOOR AND ASSOCIATES
New Delhi
B.Com
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