GST rate for land owner after completion of residential apartments

[Raam Srinivasan Swaminathan Kalpathi]

JDA signed in Feb 2023

Project completed in July 2026

Residential apartments

Builder has charged landlord 3.75% CGST and 3.75% SGST are abating 1/3rd of land owner transfer value.

Is the % applied correct? Request experts to confirm. Thanks

[Sadanand Bulbule]

Refer Discussion Issue ID : 121017

[Sadanand Bulbule]

2026 (4) TMI 1653 - KARNATAKA HIGH COURT VAT / Sales Tax

The State of Karnataka, The Additional Commissioner of Commercial Taxes (Zone) -1, Department of Commercial Taxes, Government of Karnataka, The ...More

AI Summary

GST rate for landowner apartments under a joint development agreement and abatement of transfer value The query concerns GST applicable to a landowner for residential apartments developed under a joint development agreement. The agreement was signed in February 2023 and the project completed in July 2026. The builder charged CGST at 3.75% and SGST at 3.75%, after abating one-third of the landowner's transfer value. The issue is whether applying these rates to the reduced value is correct. No conclusive legal determination is provided.