• GST on flats of Land owner

I had entered into JV agreement in 2015 with the land owner, now the flats are ready. I am going to sell after the completion, so there is no GST on builders share. I want to know the GST implications on the share of Land owners Flats. does he need to pay ? Please let me know GST involvement on the Land owners share of flats ?
Asked 6 months ago in GST from Coimbatore, Tamil Nadu

Since in a jv agreement you agree to give a part of your land to builder and he agrees to give you flats so in that case you need to pay GST @12% as in this case it is assumed that consideration flowed before the completion of flat.

 

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Thank you

Naman Maloo
CA, Jaipur
1363 Answers
16 Consultations

5.0 on 5.0

Dear Sir,

Hope you are doing well !!

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 12%.

 

Sale of Building after receipt of Completion Certificate is treated as neither goods nor service, that means not considered as supply and therefore GST is not applicable.

 

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
2069 Answers
17 Consultations

5.0 on 5.0

GST is not applicable if the whole of the consideration for a property is paid after issuance of completion certificate by a competent authority.

 

Payal Chhajed
CA, Mumbai
2069 Answers
17 Consultations

5.0 on 5.0

Yes the land owner needs to pay GST as he has got the flat constructed from the builder. The builder constructed his flats that's his business therefore there is no gst on same.

So builder needs to pay GST @12% on the value of flats transferred or the FMV of land transferred to builder.

 

Naman Maloo
CA, Jaipur
1363 Answers
16 Consultations

5.0 on 5.0

In case of JV agreement, GST is applicable both on land owner and builder. Builder will be liable to pay GST @18% on the construction amount of the flats. Landowner will be liable to pay GST@12% on his share of flats.

 

Thanks

Vivek Kumar Arora
CA, Delhi
2412 Answers
105 Consultations

5.0 on 5.0

Land owners share - GST needs to be paid at 12% on the value of flat (selling price of other flat can be considered as market value or by valuation of property).

 

GST is not applicable when flat is sold after providing completion certificate. but in your case since you are the land owner, it can be concluded you received flat prior to completion of construction. (even in case if no consideration is paid by you.)

Chirag Maru
CA, Raipur
147 Answers

5.0 on 5.0

Hi,

 

Land owner will be liable to pay GST@12% on his share of flats.

 

Karishma Chhajer
CA, Jodhpur
1004 Answers
4 Consultations

5.0 on 5.0

Yes, land owner will be liable for GST@12% even if property is completed and have got completion certificate.

Karishma Chhajer
CA, Jodhpur
1004 Answers
4 Consultations

5.0 on 5.0

Hi.

 

Land owner will be liable to GST@12%.

 

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi

landowner liable to pay GST @12% .

Swati Agrawal
CA, Indore
1006 Answers
3 Consultations

5.0 on 5.0

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