GST RATE ON LANDOWNER SHARE

[NAMAN DOKANIA]

A builder is constructing flats by entering into the development agreement in the year 2017 and opts for old rate of tax by filing of Annexure 4 before 01.04.2019, thus charging GST@12% to the customers

Now, the building is complete and he is handing over the Flat to the Landowner. What rate of GST shall be charged or payable and at what rate?? Whether the same will be 12% or 18%?

Please clarify with proper notification if possible.

AI Summary

Clarification on GST rates for completed flats: 12% with land value, 18% without land value. A builder, who entered a development agreement in 2017, charged a 12% GST rate to customers by opting for the old tax rate before April 1, 2019. The query concerns the applicable GST rate when handing over a completed flat to the landowner. The response indicates that if the first sale value, including land value, is used, a 12% GST rate applies. If the land value is excluded, the GST rate would be 18%.