GST collection by landlord from builder to clear his GST liability

Hi,

Yes, it is correct that landowner is liable to pay 12% of his share of constructed area's value as GST.

No,because the end user is buyers/customers not the builder.

Yes, builder is right. You will have to pay GST.

The valuation of constructed area of Landlord share to be determined from perspective of the service recipient landlord by following methods:

1. Open Market Value

2.Value of services of like kind or quality

3. Valuation of property

4.Cost plus mark up.

Gst needs to be paid by land owner to builder based on the FMV of land supplied by land owner to builder.

Hi

Yes landowner liable to pay GST @12%.

Yes GST to be paid by landowner to builder .

Hi

Yes, the builder is correct in charging you the GST. He is the service provider here providing construction services to you. You are a service receiver and hence liable to pay GST.

Hi,

Hope you are doing well !!

Yes, landowner is liable to pay 12% of his share of constructed area's value as GST.

When a developer enters into a development agreement with a Landowner, GST would become payable by the Landowner when the developer transfers possession or the rights in the constructed complex, building or civil structure, to the Landowner by entering into a conveyance deed or allotment letter.

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%.

The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property. So effectively rate will be 12% with full ITC.

It should be calculated on fair market value of land.

Thanks & Regards,

Payal Chhajed

Hi,

- You can consider the stamp duty value as total value and calculate GST@18% on the 2/3rd value.

Thanks