GST POT on Area sharing against Agreement for Sale

[Kalpesh Shah]

Respected Experts,

I have Querry as follows :

Facts of the case :

One of My client is a Developer. He has entered into an Agreement for Sale for Land alongwith FSI against consideration payable in the form of Constructed Units to be given to Landowners.

This Agreement for Sale will be converted into Conveyance Deed by paying 2% stamp duty in the future after transaction gets over.  

Querry :

1. What will be point of Taxation for units of Landowners ? At the time of OC or at the time of Executing Agreement for Sale ?

2. Whether GST RCM applicable on Unbooked Residential units at the time Receipt of OC ?

Thank you in Advance 

AI Summary

GST on landowner units: tax arises at completion/occupancy and unsold units attract reverse charge on occupancy.
GST on units allotted to landowners is triggered at Completion/First Occupancy Certificate unless transferred earlier, with unsold units attracting the reverse charge mechanism within thirty days; valuation should follow open market value or cost-plus where market value is indeterminate. Characterisation of the agreement (agreement for sale versus joint development) and the precise contractual terms determine whether consideration is treated as transfer of land, supply of service, or allotment of constructed units and thereby allocate GST liability.