Gst rate for redevelopment of free hold land after 1 st April 2019

Rate / HSN codes 717 views 2 replies

Sandhya Lawate

47 Points Joined June 2018

we, the five landlords giving our old house on free hold land , to builder for redevelopment.In return we are getting some cash component and one ready flat to each landlord.Agreement will be done after 1 st April 2019.How much GST applicable to us on the cash component as well as at the time of possession of the flat.

Replies (2)

Amrut Modi

other

292 Points Joined February 2019

As per latest amendments, landlords are not liable to pay GST over redevelopment of their plot; only builder may have to pay under RCM. But more details are awaited over the issue.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

As per Notification 4/2019 CT (r) , Dt .29.3.19

Supply of TDR, long term lease (premium) of land by a
landowner to a developer shall be exempted subject to the
condition that the constructed flats are sold before issuance of
completion certificate and tax is paid on them.
The exemption of TDR will not be available on flats remain Unsold on issuance of completion certificate.

Hence

The liability to pay tax on TDRo
shall be on the Promoter instead of land owner under the
reverse charge mechanism (RCM) & Builder is liable to pay RCM in proptionate only on the Flats remain unsold on Issuance of Completion certificate