Tax compliance for a developer in jda

[Akash Singh]

Hello i am in a jda with a builder. I am the land owner. The agreement happened in the year 2013 and the project is now ready to move in although it hasn't received the completion certificate.

I was given flats as part of my share in the agreement. Inorder to save me from immediate tax liability my Ca suggested that we convert the assets into stocks and pay the tax over the years.

I had held on to my share so far but want to start selling now. I want to understand:

# my gst liability if any and the gst rate ?

( even if it is to be paid by coustomers)

# can i get some input tax credit on the gst paid?

#what all taxes do i i need pay finally? ( Do i i need to pay Gst + income tax + capital gains)

[Shilpi Jain]

You will be liable to GST @5% in case of residential units and 12% in case of commercial units, booked before completion.

Else no further tax liability.

No credit would be eligible.

AI Summary

GST on developer-shared flats: residential and commercial rates apply if units booked pre-completion; no input tax credit.
GST liability arises on units allotted to a landowner under a joint development agreement when those units are booked before project completion: residential units attract the applicable lower GST rate and commercial units attract the applicable higher GST rate; if units are not booked before completion, no further GST liability arises. No input tax credit is available on such supplies.