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 liability on landowner's share: developer primarily liable to pay GST, recoverable from landowner if agreement permits.
Developer is the primary person liable for GST on the landowner's share of constructed units and may recover tax from the landowner only if the agreement permits; valuation is the open market value of the construction service, adopting the market rate for similar flats charged to independent buyers nearest the date when development rights are treated as transferred under the applicable notification and point of taxation rules; exemptions tied to sale after occupation certificate do not automatically apply where the earlier point of taxation or special procedure notifications govern liability.