BUINESS OF SITE FORMATION AND SALE- IS LIABLE FOR REGISTRATION UNDER GST?

[KERAGODEGOPALARAO ANANTHARAO]

LAND DEVELOPER IS A PARTNERSHIP FIRM, OWNING A LAND ON WHICH SITES ARE TO BE FORMED AND SOLD TO THE PERSPECTIVE CUSTOMERS. FORMATION OF SITES LIKE LEVELING OF LAND, FORMATION OF ROADS, BRIDGES, PARK AND OTHER AMENITIES AS PER MUDA IS ENTRUSTED TO A CONTRACTOR WHO IS MANAGING PARTNER OF THE FIRM, AND FIRM IS NOT PURCHASING ANY MATERIAL FOR DEVELOPMENT,CONTRACTOR IS FULLY RESPONSIBLE FOR HANDOVER SITES FIT FOR REGISTRATION TO PROSPESPECTIVE CUSTOMERS.THE FIRM OBTAINED RERA PERMISSION.

IN THIS SITUATION: IS IT COMPULSORY FOR THE FIRM TO GET REGISTRATION UNDER GST

AI Summary

Compulsory registration where services are supplied on behalf of another, making site-development contractors liable to register.
Activity of forming and selling developed sites qualifies as a taxable service under GST. Persons who make taxable supplies on behalf of others fall under the statutory compulsory registration provision (Section 24(vii)), making the contractor performing site-development liable to register irrespective of threshold. The developer firm must register only if it crosses the service-supplier threshold exemption.