Liability of GST on landowner's share in respect of JDA entered in December 2017: Three transactions: 1. Land owner Transferring of rights to developer 2. Developer transferring constructed flats to the land owner 3. Land owner selling his share of flats GST taxability of the above transactions is needed. Please note the JDA was entered in December 2017.

Reply—

1. Land owner's transferring rights to developer — The promoter is liable to pay GST on supply of development rights on or after 01-04-2019 on reverse charge basis. Tax liability on service by way of transfer of Development rights prior to 01-04-2019 is required to be discharged in terms of Notification No. 4/2018-CentralTax (Rate) dated 25.01.2018 by the land owner.

2. When developer transferring constructed flats to land owner — Value of construction services provided by the Promoter to land owner in such cases shall be determined based on the total amount charged by the Promoter for similar apartments in the project from independent buyers, other than the land owner, nearest to the date on which such Development right etc. is transferred to the Promoter, less the value of transfer of land, if any, as prescribed in paragraph 2 of Notification No. 11/2017-CT(R) dated 28.06.2017.

3. Land owner transferring his share of land — Land owner would not liable to charge GST from the purchaser if the payment is being made after issuance of completion certificate or first occupancy.