Time of supply/date of GST payment on landlord share

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:

1. 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).

2. 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.

3. 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.

4. 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).