GST on Development agreement

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... An individual enters into development agreement with a builder for a consideration of X amount. The Consideration is completely in cash and not kind. Not. No.4/2018 Dtd.25/01/18 mandates GST on development rights to be paid by registered person on consideration recd. from builder. My take on this is that GST shall not be applicable as it is not a Supply Per Se. If read with Sec. 7 , .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... which defines supply to be in the course or furtherance of business. It is not a business for that individual to enter into agreement with the builder. It was his one of the land on which development rights have been supplied to builder for cash consideration But since it is not a business and moreover in course or furtherance of business, the test for Supply fails and hence no GST. View .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s Please? - Reply By SHARAD ANADA - The Reply = Business is defined under sec. 2(17) of CGST Act 2017 . As per the definition 2(17)(c) (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; So in my view it's a business transaction - Reply By Spudarjunan S - The Reply = Dear Sir, By .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... strict reading of law,I would second the view of Shri.Sharad Anada Ji. But on another side it is not proper to levy GST on personal transaction like this where the assessee has to pay a lumpsum income tax under capital gains. However, since the amount involved in these transactions are humongous the revenue don't want to exude the tax amount involved. The decision has to be taken either aggr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... essive or conservative depending on the amount involved and the consent of the assessee where he is ready for the elongated litigation with a peril on the interest amount involved. - GST on Development agreement - Query Started By: - Ritesh Mehta Dated:- 10-1-2019 Goods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X