GST applicabillity on owners share of flats in JDA


Is GST applicable on owners share of flats in an area sharing Joint Development agreement? As far as I know GST is payable by developer on owners share of flats in lieu of land offered, but is it recoverable from the land owner or is it the developers obligation to pay the same from his pocket?. PLEASE OFFER YOUR EXPERT ADVICE AND HELP. THANKS

Answers (2)


265 votes

It is worth to point out that in GST supply even if without consideration is levied for GST. The developer is suppose to charge GST to the land owner after deducting the cost of land either at actual or considering 1/3 cost of government valuation of admeasuring area constructed for land owner. therefore, GST is applicable.
Now if we turn whether the same is responsibility of land owner or of a developer, which entirely depending upon how your terms are decided with developer. however, it is pertinent to note that payment of GST is the responsibility of supplier of service i.e. developer by collecting it from the receiver. so accordingly you can check at your end.


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112 votes

GST is an indirect tax, the burden of which is to be borne by the consumer of goods/ receipent of services.
There is no reverse charge on development services, thus owner is not liable to deposit anything with the government, however, the developer can recover the same from owner and this depends on terms of contract between the owner and developer.
So, the answer to your query lies in the terms agreed between you and developer in the development agreement.

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