Joint Development Agreement valuation

[JIGAR SHAH]

If a land owner has entered into a joint development agreement with the builder and has also registered himself under GST, but the receipts are not certain, what will be taken as taxable value to charge GST and what will be time of supply?

Should we consider date of joint development agreement as time of supply, if so what will be taxable value to charge GST?

[DR.MARIAPPAN GOVINDARAJAN]

In my view you may consider the date of joint development agreement as the time of supply. The GST rate as prevailing on that date may be taken.

AI Summary

Time of supply under joint development agreements: use the agreement date and apply the GST rate prevailing then. Treat the date of the joint development agreement as the time of supply; apply the GST rate prevailing on that date when receipts are uncertain. No alternate valuation method is provided.