GST on Land Owner's share

[Kavali Ramanjeneyulu]

Sir, Land Owner entered into deveopment agreement with the developer for construction of residential complex. Developer's share is 7 flats and paid gst on his portion of 7 flats and land owner's share is 5 flats . The developer paid GST on 4 flats and claimed exemption on 1 flat as it was sold after getting Occupation certificate before . The above issue pertains to the the period prior to 31.03.2019.In this clarification may please be provided on the following:

1. on the land owner's share , who is required to pay GST whether land owner or developer

2. If Developer is to pay GST on Land Owner's share, what is the value to be adopted for payment of GST

3. Whether exemption for flats sold after getting OC is applicable to land owner's share of flats.

Relevant Notifications/ Circulars/AAR may please be provided.

AI Summary

GST Implications for Landowner's Share in Development Agreement: Developer's Responsibility, Valuation, and Exemptions Explained. A discussion on the Goods and Services Tax (GST) implications for a landowner's share in a development agreement with a developer. The developer is responsible for paying GST on the landowner's share, which can be collected from the landowner if agreed. The open market value of the service provided to the landowner should be used for GST calculations. Exemptions for flats sold after obtaining an Occupation Certificate (OC) do not apply to the landowner's share. The point of taxation is crucial, and the liability arises when the completion certificate is obtained. The valuation should be based on similar flats' value nearest to the development rights transfer date.