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

Landlords in Joint Development Agreement Must Pay GST on Units They Sell, Including Unincorporated Joint Ventures. A query was raised regarding the liability of a landlord for Goods and Services Tax (GST) on portions received in a Joint Development Agreement (JDA) before or after April 1, 2019. The response clarified that if the agreement allows both the landowner and the promoter to sell apartments, each party is responsible for paying GST on the units they sell. If a separate legal entity, such as a company or partnership, is formed, it must pay GST. An unincorporated joint venture also qualifies as a 'person' under the CGST Act, requiring a PAN and separate registration.