GST and capital gains tax

Yes the developer would collect GST from you and this would be collected when he transfers possession to you and GST would be @5%.

If you sell apartment before completion certificate you need to collect GST from customer and deposit it with government and it can be a cumbersome task so try to sell after completion.

You are transferring 60% of rights to developer so he will collect GST on 60% of value of land because for him the consideration he received is 60% of land.

Capital gain will also be calculate at the time of transfer of possession and sale consideration would be fair value of flat received and you can claim exemption u/s 54F since you are transferring land.

Yes GST will be recovered by builder in any case.

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Thank you.

Hi

1. Yes,land owner has to pay GST to builder at time of taking allotment..

2.yes,GST can be charged from buyer,if sold before completion.

3 & 4.on expected price of apartment

5. At a time of taking allotment ,you have to pay gst on all your share .

Hope it helps

Hi,

1. Yes, when you (Land Holder) will transfer rights in Land to developer, Gst will be levied on this transaction.

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).

2.If you sell the apartments BEFORE completion certificate then you will have to collect the GST from the buyers.

3. GST will be levied on 60% of the value of land.

4. Fair value of land.

5. Yes.

Hi,

1) In case of JDA, for the projects for which TDR transferred on or after 01.04.2019, liability to pay GST is shifted on the developer/builder and not on the land owner.

2) Selling of apartments by the landowner before obtaining completion certificate would attract GST in the hands of the landowner and buyer needs to pay for it.

3) GST will be levied on the 2/3 cost of the flat.

4) In case flats will be sold before obtaining completion certificate, capital gain will be calculated in the year of transfer on the stamp duty value of the property.

5) No.

Thanks

After 01.04.2019 if any project starts it has to collect GST @5% and they cant take ITC and since you have said you are going to enter into JDA now 5% rate would be applicable to you.

You can claim exemption in income tax u/s 54F but only for one flat and only when you own one flat when you show such capital gain.

You need to pay GST to builder for providing you construction service other than that no GST is required.

Reply to your second question.

1) No GST to be paid by you at the time of signing of the JDA. Why you are using the word allotment?

2) Yes your understanding is correct.

3) Already replied in my previous answer.

4) Yes you can claim exemption u/s 54F in respect to capital gain.

Hi,

-You need to pay GST at the time of possession.

-5% without ITC is applicable to you.

-GST on fair price of land.

-You can claim exemption u/s 54F.

Hello,

1. Yes, GST is payable.

2. If you sell the apartments before completion certificate, this would attract GST and you will have to collect it from the buyers.

3. 2/3rd of the value of the apartment.

4. Capital Gain would be levied at the time of transfer of possession and consideration would be the stamp duty value of the apartment.

5. Yes, Builder will collect GST.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

For project starting after 1st April 2019, 5% GST without ITC benefits is applicable.

You can claim an exemption under Sec. 54F.

Even if you keep the flats, you will have to pay GST to the builder for his services.

Regards,

CA Hunny Badlani