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

GST Valuation for Joint Development: Time of Supply is Date of Agreement, Apply Prevailing Rate Despite Uncertain Receipts A query was raised regarding the valuation of a joint development agreement under the Goods and Services Tax (GST) framework. The question focused on determining the taxable value and the time of supply when a landowner, registered under GST, enters such an agreement with a builder, but the receipts remain uncertain. The response suggested considering the date of the joint development agreement as the time of supply and applying the GST rate prevailing on that date.