GST liability on Complete Commercial Project under Area Sharing

[Kalpesh Shah]

Respected Seniors and experts

Querry : Our client is a Partnership Firm, entering into a Joint Development Agreement for Industrial Premises. The Terms of Agreement is Area Sharing.

Whether benefit of Notification No. 06/2019, dated : 29-3-2019, can be taken to postpone the GST liability till Occupancy Certificate is Received ?

Thanking you in Advance

[Shilpi Jain]

Yes. The said notification is applicable for commercial projects as well.

AI Summary

GST deferment under occupancy certificate rule applies to commercial area sharing development, allowing tax liability postponement until occupancy is granted.
The principal operative point is that the deferment notification allowing postponement of GST liability until issuance of the occupancy certificate applies to area sharing joint development projects, and that this applicability expressly extends to commercial projects including industrial premises under the stated agreement.