Time of Supply ( point of GST taxation ) for JDA registered in 2017 Aug and

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Clarifier

Landlord

62 Points Posted on 11 July 2023

Conext: Time of supply of services delivered via registered ( before 2019 Apr 1 ) JDA to construct a commercial real estate project.

Facts:
1. JDA registered in 2017 August
2.JDA provides details of respective shares of developer and landlord
3.Project completed in 20224. No conveyance deed or allotment letter issue by developer
5. Occupancy certificate received in Jan 2022 from municipal corporation.6. Landlord shares mutated in their names based on occupancy certificate and registered JDA.

6. Current Status: Property rented out to a business since June 2021 i.e. even before the constrcution was ready. Rent started from April 2023.

Questions:

What is time of supply i.e. point of taxation for GST ti be paid by landlord ?

Will liability to pay GST be in the financial year when the JDA was registered or will iit be in the year when occupancy certificate is received ?

Replies (2)

Quick Summary

This discussion clarifies the point of taxation for GST on Joint Development Agreements (JDAs) involving landlords. The key question is when the landlord's GST liability arises – at JDA registration or upon project completion. The consensus suggests that the time of supply, and thus the GST payment point for the landlord, is triggered by the receipt of the occupancy certificate, signifying the property's readiness for use, rather than the initial JDA registration date.

Sanjana Mohanty

90 Points Posted on 17 July 2023

The time of supply (point of GST taxation) for the landlord in the given scenario would be determined based on the completion of the project and the receipt of the occupancy certificate. In this case:

The JDA (Joint Development Agreement) was registered in August 2017.
The project was completed in 2022.
The occupancy certificate was received in January 2022.
The property was rented out to a business since June 2021, with rent starting from April 2023.

Based on these facts, the liability to pay GST by the landlord would arise in the financial year when the occupancy certificate was received (i.e., in January 2022) as the completion of the project and receipt of the occupancy certificate signify the readiness of the property for its intended use.