GST implication on land owner on a JDA executed on July 2015

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1. Is landowner liable to pay GST on his area share
Answer: If you are benefiting (revenue form apart from area share) from the JDA then you are liable to pay GST. If the builder is solely providing you construction then GST is not payable;

2. Is this agreement classified under goods or supply of services
Answer: Supply of continuous service;

2a. If supply of services then Value of GST will be construction cost x 18% or as per goods i.e ready recknor value x 12%
Answer: It will be 18%;

3. Time of payment of GST - on sale of per unit or on allotment (if on allotment any way to push it to on sale of units)
Answer: the invoice shall be issued before or at the time when the supplier of service receives the payment;

4. Land owner can seek ITC from developer (how and how much)
Answer: You are eligible to take full ITC. The invoice and other documents showing debit of supply will assist you in obtaining the ITC. You must also consult a good CA to understand the concept better.

Advocate Gowaal Padavi LawRato