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Gst on plot given for development registration

18 February 2019

Mr A land owner entered into development agreement with Mr B ,a developer, and Mr B agree to pay development charges of Rs 20 lakhs to Mr A.

And for registration of development agreement, Rs. 125000/- charges required to pay to local govt authority

what will be gst to be payable in this situation and who will be liable to pay gst

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6 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 February 2019

No GST Applicable : land owner is essentially selling an immovable property (Share in land) , & As per schedule III It's not a supply Hence, no GST.

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Satish Kavitake (389 Points)
Replied 21 February 2019

ok sir, and what about GST on registration expenses of development agreement

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 February 2019

Function Entrusted to Municipality is exempted as per Noti. 12/2017 CT (r)

Hence it's exempted

Satish Kavitake (389 Points)
Replied 23 February 2019

thanks you.

can you explain points related to development agreement with reference to Notification No 4/2018 dated 25/01/2018

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 25 February 2019

MEANS GST WILL BE APPLICABLE ONLY WHEN THE RIGHT BEING TRANSFER BY DEVELOPER TO LANDLORD BY ENTERING INTO CONVEYANCE DEED

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Nithin Sivadas (Student CA CPT ) (212 Points)
Replied 25 February 2019

@ pankaj rawat isnt this a jda so its supply of services right?taxes paid is to be added to transaction value u/s 15(2) and gst is to be paid by mr a on 21,25,000?