Transfer of Immovable Property.

[shwetal oswal]

Registered Agreement to sale has been executed in FY 2021-22 and possession of the immovable property has been given to the transferee.

But consideration will be received in installments in next 5 years and final conveyance will be executed after full payment has been received.

In which year will the transfer be considered?

In FY 2021-22 or in the year in which final conveyance will be executed?

[ARVIND JAIN]

I believe it should be the year of Agreement + possession , irrespective of the receipt of consideration as the same should be shown as receivable. Its just instead of Bank you are providing the instalment facility to the buyer.

[Shilpi Jain]

If its a unit sold before completion certificate is received - then assuming it is a supply of service, the moment possession is trasferred, service is complete and within 30 days invoice to be issued and tax to be discharged.

If not, no GST liability.

AI Summary

Transfer of immovable property: agreement plus possession fixes transfer date; pre completion possession can trigger GST obligations.
Transfer of immovable property is treated as effected on execution of the agreement together with delivery of possession, regardless of deferred installmental consideration which is shown as receivable. If the sale involves a unit before completion certificate, possession may constitute a supply of service requiring invoice within thirty days and payment of GST; absent that pre completion supply characterization, no GST arises solely because conveyance is delayed.