Rrendering services to farmer by the builder towrds sale of developed Plots

[OmPrakash jain]

Land sale by builder(Developer) on behalf of land owner (Farmer) as per Joint development agreement (JDA). Sharing of revenue at specified ratio per JDA. Land development charges paid by builder (Developer) without any ownership transfer of Land. Whether any GST is leviable on the share of builder towards sale of plot on behalf of farmer. The farmer & Builder are registered persons under GST & Developed Plots have been sold after grant of completion certificates. Two Advance ruling authorities have levied GST on the share of builder towards sale of plots treating sale proceeds as consideration for rendering services to farmer by the builder.

AI Summary

Debate on GST Applicability to Builder's Share in Joint Development Agreement with Farmer for Developed Plots. A discussion on a forum addressed the issue of whether Goods and Services Tax (GST) applies to the share of a builder in a joint development agreement with a farmer for the sale of developed plots. The builder, who does not own the land, receives a share of the proceeds as compensation for development services. Despite two advance ruling authorities levying GST on the builder's share, there is debate over its applicability. Some participants argue that the builder should issue an invoice for the development services, while others question the relevance of certain notifications and the interpretation of Schedule III regarding land sales.