A Builder has taken land on development agreement basis on 01.04.2017. After 01.04.2019 amendment, the Builder has opted for Old rate only by filing Annexure 4.
Now, today the builder is handing over the flat to the landowner. What GST Rate shall be payable by the Builder on reverse charge on the same and what shall be the value of supply?
Please clarify
Builder's GST Dilemma: Old Rate or New? AARs Favor Forward Charge for Flat Transfers Post-2019 A builder entered a development agreement for land on April 1, 2017, and opted to continue with the old GST rate post-April 1, 2019, by filing Annexure 4. The query concerns the applicable GST rate and value of supply when the builder hands over a flat to the landowner. The response highlights the lack of clarity in transitional cases, noting that while some believe only service tax should apply, the Advance Authority Rulings (AARs) suggest GST is payable by the builder under Forward Charge Mechanism (FCM), not Reverse Charge Mechanism (RCM). The landowner may be liable for any applicable tax. (AI Summary)
TaxTMI 
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