Respected Sir/Madam, under a JDA, if developer enters into sale agreement of the under construction flat with a prospective buyer then, whether the developer is required to pay GST two times, one for service provided to land owner and second for sale of such under construction flat which he got as consideration for construction of flats.
For eg. Developer constructs 2 flats on the land of land owner under JDA. Land owner gets 1 flat and developer also gets 1 flat as consideration. Now the developer enters for sale of such flat before its completion.
If the stamp duty value of 1 flat is say Rs. 1 Crore and developer sells it for 1.25 Crore to the buyer. How would the developer discharge his GST liability and what would be the value for all such transactions.
Sale of one flat by developer would be subject to GST on transaction value less value of land (1/3rd). The GST on the construction service by way of giving one flat to the land owner towards TDR shall be valued on basis of fair value of flat less value of land (1/3rd) shall be paid by builder at time of issue of CC or on its first occupation, whichever is earlier.
Thus no double taxation is there. However as two flats are being constructed, GST will be charged on both the flats, one under FCM and one under RCM.
Team Clearmytax.in
Sir, if land owner also sells his flat before completion, in that case still the developer is required to pay GST on TDR.
However the developer is paying GST on construction service of flat given to land owner.
Sir, if land owner also sells his flat before completion, in that case the developer is required to pay GST on TDR under RCM or not.
And whether the developer would pay GST on construction service of flat given to land owner.