17 December 2023
Where a land owner enter into JDA with builder having following terms: Total flats 100 Flats to landowner 30 Flat sold before issue of cc or first occupation 63 Unsold flats in issue of cc 7 Sale consideration of flat nearest to date of development agreement 80 lakhs Sale consideration of flat nearest to issue of CC 100 lakhs.
Tax payable lower of a or b
a. 80 lacs*30 flats*18%× 7 flats divided by 100 flats=30.24 lacs
b. 7 flats*100 lakhs*5%= 35 lacs.
Thus GST payable by builder under RCM will be 30.24 lacs.
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