TaxTMI 
TaxTMI 
TaxTMI 
GST POT on Area sharing against Agreement for Sale
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....ST POT on Area sharing against Agreement for Sale<br> Query (Issue) Started By: - Kalpesh Shah Dated:- 12-8-2025 Last Reply Date:- 22-8-2025 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>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....
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.... 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 t....
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....he time Receipt of OC ? Thank you in Advance Reply By Sadanand Bulbule: The Reply: GST on landowners flats is due at the stage of obtaining Completion/First Occupancy Certificate unless sold earlier. Unsold units at the stage of CC/OC attract RCM by the developer/promoter within 30 days. Refer Section 13 of the CGST Act for time of supply of services with relevant notification....
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....s. Reply By Kalpesh Shah: The Reply: Sir, Thank you for your reply. Agreement entered is Agreement for Sale. Sale gets completed after terms & conditions in the Agreement is fulfilled. Is this Agreement is considered as a Joint Development Agreement or a Conveyance Deed ? Reply By Shilpi Jain: The Reply: Units handed over to LO will be liable to GST and value will be as per rul....
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....e 27 i..e open market value. If this cannot be identified you can consider cost + 10%. If there is no JDA, may not be development rights. However one catch in this would be that the builder is constructing all the units for the LO. Out of those constructed units, a part is given back to developer as consideration. So if there are 100 units int he project, builder will have to pay GST on e....
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....ntire 100 units and cannot afford to only pay GST on the 40 units (for example) that may be handed over to LO. Terms of agreement and other aspects would be very important to look in this regard. The above is only a prima view based on understanding of facts.<br> Discussion Forum - Knowledge Sharing ....