I am the owner of a land given the land to the builder for construction of Apartment on the condition that after construction 50% of the constructed building/flat will be given to me. After construction the builder has given me the 50% of total constructed flat but charged GST on material and service used in constructing such building or flat.
Am I eligible to pay the GST amount charged by the builder, please elaborate
Landowner Faces GST Liability on Joint Development Agreement; Rates Vary Based on Terms and Apartment Type. A landowner entered a joint development agreement with a builder, where 50% of the constructed apartments would be returned to the landowner. The builder charged GST on the construction materials and services. Responses in the forum indicate the landowner is liable for GST, with a rate of 7.5% or 1.5% for affordable apartments, on the value of construction services. A deduction for the land value is applicable. Another opinion suggests an 18% GST rate. The liability may depend on the agreement terms, and the tax treatment varies based on the transaction structure. (AI Summary)
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