When shall the liability for GST arise in the case of flats to be given to land owner in exchange for site area? What is the valuation procedure? Clarify with any other relevant information.
Reply
As per Ruling of AUTHORITY FOR ADVANCE RULINGS, KARNATAKA on application made by M/S. NFORCE INFRASTRUCTURE INDIA PVT. LTD, dated 28.11.2018 liability to pay GST shall arise at the time when the said developer, builder, construction company or any other registered person, as the case may be, transfers possession or the right in the constructed complex, building or civil structure, to the person supplying the development rights by entering into a conveyance deed or similar instrument.
The developer needs to pay tax towards the construction service provided to the land owner, on the value to be determined in terms of para 2 of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017. |