TaxTMI 
TaxTMI 
2019 (8) TMI 395
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.... respect of the following question: Whether Applicant is liable for GST towards work executed under JDA on land owner's portion where work commenced during pre GST and continued under GST Law. If tax is applicable the valuation for payment of tax? 3. The applicant Company furnishes the following facts relevant to the stated activity: 3.1 The Applicant is engaged in construction and sale of residential apartments and residential complexes under joint development agreements. 3.2 The Applicant have executed projects under JDA with Land Owners for an agreed ratio of built-up area. Construction was commenced during pre-GST regime and continued under GST regime. Substantial portion of the work has been sub-contracted to another registered person 3.3 The Applicant submits, their interpretation / understanding of law and consequently their View point, On the issue raised by them, that the Joint Development Agreement (JDA) is an agreement between a land owner and developer, where land owner contributes land and developer develops the property with the condition to share the developed properties whereby land owner transfers undivided interest in lan....
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....s that tax is leviable under earlier law to the extent of work executed under earlier law and not under GST law. In other words, tax shall be applicable under GST law, only on the portion of work executed under GST law. PERSONAL HEARING: /PROCEEDINGS HELD ON 21.05.2018. 4. Sri, Sanjay M Dhariwal, Chartered Accountant at, M/s Dhariwal & Sreenivas, Bengaluru, on authorization issued by Sri Navneet Jhunjhunwala, Director of the Company, appeared as Authorised representative of the Company for personal hearing proceedings on 21.05.2018 and reiterated the facts narrated in their application. The applicant also submitted copies of the following documents during personal hearing. (a) Commencement certificate issued by local authority (BBMP) (b) Copy of completion certificate containing status of project i.e. percentage of completion obtained from Chartered Engineer. (c) Copy of application filed before the local authority (BBMP) seeking issuance of Occupancy Certificate, (d) Copy of Hon'ble Karnataka High Court decision in State of Karnataka Vs Mahaveer Willow [2014] 78 Kar.L.J 305 (HC) (DB). (e) Copy of Hon'ble Karnataka High Court d....
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....licant is apparently drawing reference to the time of supply. 5.5 In view of the above, the question before us to decide is whether the activity / supply of the applicant is liable for GST, if so, the value of the said supply and the time of supply. GST LIABILITY ON SUPPLY INVOLVED: 5.6 The applicant provides the service of construction of, flats, in lieu of the development rights given by the land owner. In other words the supply of construction service provided by the applicant to the land owner is in the nature of barter. Section 7 of the CGST Act 2017 defines "Supply", inter alia including all forms of supply of goods or services or both, such as sale, barter etc., that are made or agreed to be made for a consideration by a person in the Course of furtherance of business. Further Section 2(31) of CGST Act 2017 defines "Consideration" in relation to the supply of goods or services or both as any payment made or to be made, whether in money or otherwise. In the instant case the applicant received the consideration in the form of development rights which is other than money and qualifies to be "consideration". Therefore in the instant Case the supply is in the form of bar....
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....) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply. Explanation.- For the purposes of paragraph 2, "total amount" means the sum total of,- a) consideration charged for aforesaid service; and b) amount charged for transfer of land or undivided share of land, as the case may be. TIME OF SUPPLY: 5.10. The applicant, drawing reference to Section 142 of CGST Act 2017, contends that the tax is leviable under earlier law to the extent of work executed under earlier law and GST is leviable under GST Law on the work executed under GST Law. In this regard we draw reference once again to the Notification No.4/2018-Central Tax (Rate) dated 25.01.2018, which stipulates that the Registered persons, who supply construction service of....