GST on buying property from landowner's share.

Hi,

Yes, you should ask for receipt/ tax invoice with GST registration number from landowner.

Hello Sir,

Yes, you must ask for an invoice or receipt which has the complete GSTN number in support of his GST charges. You would need the same in future for computing the cost you are paying for the registration value.

Thanks

Damini

- As the landowner is selling underconstructed flat therefore he is liable to pay tax. 

- Collect tax invoice, receipt of each payment and also incorporate this fact in the agreement.

Hello,

GST is applicable since the landowner is selling an under-constructed flat.

You should ask for a tax invoice with GSTIN of the landowner and receipt of each payment made to the landowner.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hello Sir,

You should ask for a tax invoice with GST number.

Yes you need to ask for tax invoice and the tax invoice would carry his GST number.

As the land owner would have entered into JDA they need to register under GST compulsorily so they can easily provide you invoice if they are charging you GST.

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

Thank you

Hi,

Yes, if landowner should have GST numbers and provide you with the GST invoice if there are charging GST.

Whether flat which you are buying is owned by multiple owners? If yes, then each one of them should give GST invoice for their part of share.

Apart from tax invoice, you need to seek from land owner following documents :

1. Joint Development Agreement

This is an agreement signed between the landowner and the developer, where the landowner gives the land to the developer to build and sell apartments; in return, he gets a fixed set of apartments to sell. The landowner issues a GPA to the developer.

2. Sharing agreement

The Sharing agreement shows the landowner’s share and developer’s share in a JDA. This helps the buyer clarify whether the apartment/property for sale belongs to the developer’s or the landowner’s share and check the validity of the seller.

3.Call for inspection of original documents

Although the builder usually has all the original documents in his possession, he may have pledged the property to a bank as collateral. In this case he may not have the originals. If so, the builder has to provide a No-objection certificate (NOC) from the bank prior to the registration of the property, stating that the money goes towards paying off the loan and the property in question is free of mortgage. When buying the landowner’s share of the property, this scrutiny is slightly less crucial since the landowner’s share is typically free of mortgage in most JDAs.