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GST on plot in joint development agreement

CA OM PRAKASH GUPTA (CA Practice ) (76 Points)

27 December 2022

Land owner executed a land development agrrement with a developer on the conditions that after the development of land he gets some plots in consideration and the balance will be sold by developer. Querry is whether land owner is liable for GST on sale of developed plot and plots sold by the developer?

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 27 December 2022

Yes, land developer is liable to charge/pay GST over development charges levied by him as cost of developed land/plots.

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Sravan Yelagandula (Employee) (87 Points)
Replied 28 December 2022

Land developer is liable to pay GST because he has provided Works Contract Services (development services) to land owner and received developed land as consideration.

Landlord is not liable to pay GST on sale of developed plots as sale o land is neither a supply of goods nor supply of services.

As per Sl no. (5) of Schedule III of the Central Goods and Services Tax Act, 2017, 'sale of land' is neither a supply of goods nor a supply of services, therefore, sale of land does not attract GST