Liability of Land lord

[Ravikumar Doddi]

Dear sir,

What is the liability of the landord whether GST is payable on the portions received in JDA entered before or after 1.4.2019

[Rajagopalan Ranganathan]

Sir,

If the agreement provides that some apartments will be sold directly by the land owner and some by the promoter (builder/developer) then the land owner may pay GST on apartments sold by him and promoter on apartments sold by him directly to customers.

If separate legal entity (like company or partnership firm) is constituted, then GST would be payable by such firm or company. Even if it is unincorporated joint venture, it can come under definition of 'person' as Section 2 (84) of CGST Act states that 'person' includes an association of person or body of individuals, whether incorporated or not. In such case the AOP should obtain PAN and have separate registration under CGST Law.

AI Summary

GST liability: allocation between landowner and promoter depends on who sells units; AOPs require PAN and registration. GST liability in joint development depends on who sells the units: the landowner pays GST on apartments he sells and the promoter pays GST on apartments it sells. If a separate legal entity (including an unincorporated AOP) undertakes the development, that entity is the taxable person and must obtain PAN and separate registration under the CGST law.