Transfer of development rights: 4/2018 cgst(rates)

Applicable from 25th Jan, 2018 only. This notification is relating to time of supply as to when GST is to be paid. Date of agreement is not relevant here. It can be any date upto 1st July 2017 or even before that. What is important is the date of "transfers possession or the right in the constructed complex, building or civil structure, to the person supplying the development rights by entering into a conveyance deed or similar instrument (for example allotment letter)."

Thank you for the reply Shivam,So do you mean to say: If development agreement is entered into,say 10/07/2017 .Time of Supply as per S: 31(5) of CGST Act(without considering Notification 4/2018) will be 10/07/2017. But considering Notification 4/2018 If transfer of possession is say, Feb 2018. Time of supply will be Feb 2018 and Not July 2017?

Section 31(5) deals with time limit for issuance of invoice in case of continuous supply of service. Time of supply in case of service is dealt in section 13.

Agreement has nothing to do with the time of supply. 

Yes you are correct that S: 13 deals with time of Supply.But in S: 13 there is a reference to S: 31(2) which deals with period prescribed for invoice as it would be earliest.I am referring to S: 31(5) as it deals with Continous Supply of Service which is what builder and his services deal in as per definition of S: 2(33). So as per 31(5)(b) "..... supplier of service recieves the payment" In Joint development agreement case, Consideration/Payment received by Builder is the date on which development rights are received by him,which is the date on which JD Agreement is entered into by the builder as was the stand taken in the erstwhile tax regime.

Section 13 deals with time of supply for services

Section 31 deals with invoicing

Notification No. 4/2018 CGST (Rates) dated 25th january 2018 deals with time of supply of service specified in the notification. Construction service where there is no monetary consideration. You give development right and receive a flat in 2nd floor. Time of supply will be date of transfers possession or the right in the constructed complex, building or civil structure, to the person supplying the development rights by entering into a conveyance deed or similar instrument (for example allotment letter).