GST RATE ON LANDOWNER SHARE, Goods and Services Tax - GST

[NAMAN DOKANIA]

A builder is constructing flats by entering into the development agreement in the year 2017 and opts for old rate of tax by filing of Annexure 4 before 01.04.2019, thus charging GST@12% to the customers

Now, the building is complete and he is handing over the Flat to the Landowner. What rate of GST shall be charged or payable and at what rate?? Whether the same will be 12% or 18%?

Please clarify with proper notification if possible.

Posts / Replies

[Shilpi Jain]

The rate of tax will depend on the valuation adopted.

If the first sale value is adopted i.e. a value which has land value included, 12% rate should be applied. Else in case a value where land value is not included, is adopted, rate of tax would be 18%.