Percentage of GST on Construction Service by the Builder charged to Land Owner on Apartments

Dear Sir, what is the value of flat and the percentage of GST on Construction Service to be paid on the flats of share of Land Owners in Joint Development Agreement ? 

I read the value of Land owners flat is 2/3rd value of first sold flat from date of signing JDA as the GST is not on value of land. 

Also I read it is 1% or 5% GST depending on affordable or nonaffordable flats. 

Since details and share of flats already allotted to Builder and Land Owner in registered JDA in advance, since no conveyance deed is required to register again and since completion certificate is already issued is there any GST on Construction Service is applicable. 

Replies (1)

I'll break down the GST implications for the Land Owner's share of flats in a Joint Development Agreement (JDA).

Value of Land Owner's Flat The value of the Land Owner's flat is determined as 2/3rd of the value of the first sold flat, as per the GST regulations.

 This is because GST is not applicable on the value of the land. GST Rate on Construction Service The GST rate on construction services depends on the type of flat:

1. _Affordable flats_: 1% GST rate (effective rate: 0.5% CGST + 0.5% SGST)

2. _Non-affordable flats_: 5% GST rate (effective rate: 2.5% CGST + 2.5% SGST) GST Applicability on Land Owner's Share of Flats In your case, since:

1. The JDA is registered, and the share of flats is already allotted to the Builder and Land Owner.

2. No conveyance deed is required to be registered again.

3. The completion certificate has already been issued. GST on construction services is not applicable on the Land Owner's share of flats, as the consideration for the construction service is in the form of land/development rights, which is not subject to GST.

However, please note that: 1. The Builder may have already paid GST on the construction services provided to the Land Owner.

2. The Land Owner may need to obtain a GST invoice from the Builder to claim input tax credit (ITC), if eligible.

Consult a tax professional or GST expert to ensure compliance with GST regulations and to confirm the applicability of GST on the Land Owner's share of flats.

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