Time of supply/date of GST payment on landlord share

Facts:

1. JDA registered in 2017 August

2. JDA provides details of respective shares of developer and landlord

3. Project completed in 2021. No conveyance deed or allotment letter issue by developer

5. Occupancy certificate received in Jan 2022 from municipal corporation.

6. Landlord shares mutated and received municipal property tax identification numbers in their names based on occupancy certificate and registered JDA.

Questions:

What is time of supply/date of payment for GST to be paid by landlord is it 2017 or 2022 ?

i.e.

Will liability to pay GST for landlord be in the financial year when the JDA was registered i.e. 2017 when development rights were given to developer via regd JDA or will it be in the year when occupancy certificate was received i.e. 2022 ?

Great question! In case of Joint Development Agreements (JDA), GST liability and time of supply for the landlord’s share is a nuanced topic.

Key Points:

Time of Supply under GST (Section 12 of CGST Act):
Generally, time of supply for goods/services is the earliest of:
- Date of issue of invoice, or
- Date of receipt of payment, or
- Date of provision of service (if invoice not issued).
In JDA Context:
The developer provides construction services to the landlord in exchange for a share in the built-up property. The landlord’s “supply” here is the land, and the developer’s supply is construction.
When is GST triggered for Landlord?
- GST on transfer of development rights (TDR) or land under JDA is usually triggered when the landlord’s share of constructed property is transferred or made available to them.
- The date of completion of development or transfer of possession/allotment is often considered the time of supply, not merely registration of JDA.
Impact of Occupancy Certificate (OC):
The OC marks the completion of the building and legal use. It is a practical event indicating the developer’s completion and readiness to transfer possession.
- Without OC or possession/allotment letter, GST liability on landlord’s share may not crystallize.
- Since your OC is from Jan 2022 and shares mutated based on that, this is likely the triggering event for GST.

So, to your question:

GST liability for the landlord’s share will arise in the financial year 2022 (when occupancy certificate was received and possession/mutation occurred), not in 2017 when JDA was registered.

Summary:

Time of supply and GST liability for landlord’s share is the date when the landlord’s share of constructed property is handed over or possession is given (supported by OC/mutation), which is 2022 in your case, not the JDA registration date (2017).