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

[Shilpi Jain]

Is it a registered AoS? The agreement for sale is with the society itself or with someone else who is the landowner?

If it is a registered AoS, can be regarded as a transaction of sale of land between builder and the person selling land (assuming landowner and society are different persons).

If LO and society are same, then would require analysis of the agreements to comment further.

[Kalpesh Shah]

Respected Madam,

AFS is registered Document.

It is entered between Landowner and Builder/Developer. It is not a case of Redevelopment of Society.

One of the Terms and Conditions of the Agreement is that "Landowner will conveyance the Land in the name of Society after construction of entire layout is completed".

Here Landowner and Society, both are different persons.

AI Summary

GST on agreement for sale of land with FSI: whether reverse charge applies to commercial units under a registered AoS. Query whether GST under the reverse charge mechanism applies to commercial units sold under a registered Agreement for Sale where the builder entered a registered AoS with the landowner (not a redevelopment), will construct residential and commercial units, and the landowner will convey the land to a society after completion and occupancy certificate, with landowner and society being different persons.