GST On Agreement for Sale of Land along with FSI

[Kalpesh Shah]

Respected Experts & Seniors,

I have one querry as follows

Case :

My client is Builder Developer, entered into an Agreement for Sale of Land along with FSI having monetary Consideration. He is planning to Construct Residential as well as commercial units.

Land is not conveyanced in the name of Builder Developer but it will be conveyanced in the name of Society in future after Receipt of Occupancy Certificate.

Question :

1. Will he be liable to pay GST RCM in respect to Commercial units, since it is Agreement for Sale. ?

2. If not liable to GST RCM, pls Provide the basis on which no liability arises to GST.

3. If liable to GST RCM, then what will be the Point of Taxation ?

Thank you in Advance

AI Summary

Developer Seeks Clarification on GST Liability Under Reverse Charge Mechanism for Commercial Units in Registered Agreement A builder developer entered into an Agreement for Sale (AoS) for land and Floor Space Index (FSI) with monetary consideration, intending to construct residential and commercial units. The land will be conveyed to a society after receiving an occupancy certificate. The developer seeks clarification on whether they are liable to pay Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for commercial units. A reply inquires if the AoS is registered and whether the agreement is with the landowner or society. It is clarified that the AoS is registered between the landowner and the developer, and the landowner and society are distinct entities.