GST on land owner share sold after obtaining OC

There are two transaction.

1. Between land owner and builder. On that land owner will have to pay GST under JDA and there is no conditions attached to it.

2. Between purchaser and land owner: Now if he sells any flat to third party after receiving completion certification he is not required to pay GST on such sale.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi

No GST to be paid by land owner if he sell flats to third party, after  obtaining  OC.

Hope it helps

Hello,

You are required to pay GST to the builder on the construction services provided by him under JDA.

Now when you sell the flats, You are not required to pay GST as GST is not applicable on ready to move in flats where the sale takes place after issue of completion certificate by the competent authority.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

In your case GST liability will arise on both events. 

1) Sale of Rights in land by Land Owner to developer.

2) Construction Service provided by developer to Land Owner.

When you (Land Holder) will transfer rights in Land to developer, Gst will be levied on this transaction @ 18%. Time of supply will be considered to be the date on which the said developer transfer the possession certificate or similar instrument to you( Land Owner). Effective rate 12%.

Now, even developer has to pay GST on construction service provided by him to you (land owner) @ 18%.

As per GST Law, if an immovable property is sold before obtaining BUC, then GST is leviable at 12%. But if it is sold after obtaining BUC, No GST IS PAYABLE. So if you receive any advance money on Bookings of these flats, before obtaining BUC, GST @ 12% will be leviable. Otherwise no GST will have to be paid on sale of these Flats.

No GST required to be paid on flats unsold after obtaining completion certificate. 

Hi

Since the flats were under construction when GST came into force on 1st July 2017, GST needs to be paid to the builder.

If the landowner is selling flats after completion of construction, no GST shall be separately chargeable.

Hi,

- Builder was required to charge GST b from you on the works contract services provided.

- Selling of flats by land owner after obtaining CC and receiving of entire consideration after obtaining CC is not liable to tax.

- No GST on flats for which CC is obtained and are unsold.

Thanks

Hi,

GST liability would arise in the hands of landowner, for transfer of development rights, and to the developer, for rendering construction services. The time of supply when payment is received or when invoice is raised whichever is earlier.

The standard rate of GST for JDA is set at 18 per cent, the effective rate is 12 per cent only.

There is no GST on sale of complex/ building and ready to move in flats where sale takes place after issue of completion certificate by the competent authority,