I amthe owner of the Agricultural land in the Aurangabad. I am entering in the JV to develop the land into residentical plots with all luxurious amenities. In return the developer will give me the 40% area plots.what would be my labiality for GST.
When should I pay the GST at what stage of the transaction.
Hi,
Hope you are doing well !!
The Landowner provides development rights to the Developer by signing the Joint Development Agreement. The Developer in turn provides continuous supply of construction services to the Landowner over a period of time.
Hence, when the Landowner receives a constructed property from the Developer in exchange for providing land, the Landowner would become liable for payment of GST. The GST rate applicable on such a transaction would be 18%.
GST is payable by the Landowner @ 18% ) at the time when the developer transfers possession or the right through a conveyance deed or similar instrument like allotment letter.
So basically you are providing him 60% of your land and in return he is giving you flats worth 40% area of total plots so in this case his consideration for providing you flats equal to 40% area is 60% of the land and so he will charge you GST @12% on the FMV of 60% of the land since you are paying consideration before the construction is complete.
You will be required to pay GST as soon as you enter into an agreement to provide him his share of land.
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Thank you
Hi,
You will be liable to pay GST@12% on the FMV of 60% of the land.
GST@12% will be payable on the FMV of 60% of the land.
Regards,
Nikhil.
Hi,
- For you consideration against the land is 40% share therefore you need to pay GST on FMV of 40% share. Builder will charge GST form you on 40% share only, of which you can avail ITC to pay GST on output liability. Rate is 18%.
Thanks
