In a similar judgment in Nforce Infrastructure Pvt. Ltd[20 G.S.T.L. 184], the Authority found that the taxpayer provided construction services to the provider of the development right in exchange for consideration in the form of a transfer of development rights. (The above article was written on December 5, 2019 and co-authored by CA. Yogesh Ingale, CA Tushar Ajmera and CMA. Anuj Chordiya. The opinions expressed are strictly personal. For any questions and feedback, please contact us at email@example.com) As stated in Communication No. 5/2019 – Central Tax (rate) of 29 March 2019, when the service is provided by transfer of development rights for the construction of residential and commercial housing, the tax must be paid by the beneficiary in accordance with Article 9 (3) of the CGST Act. 2017. Therefore, the developer who is the recipient pays for the above service. 10.
Does the GST consider that the development of land from land and the sale of such land are taxable under the GST? (a) registered persons who, for remuneration, confer on a developer, promoter, contractor, construction undertaking or other registered person development rights in whole or in part in the form of construction services for complex, construction or civil construction projects; and Hon`ble ITAT Hyderabad Bench « B » in Adhinarayana Reddy Kummeta v Assistant Revenue Tax Commissioner, Circle -11(1), Hyderabad  91 taxmann.com 360 (Hyderabad-Trib.) however found that Section 45(5A) could not apply, as a substantive provision, to the previously concluded development agreement and would certainly be drawn to Section 2(47)(v). However, under the JDA agreement, there is a transaction to transfer the development right from the landowner to the developer. It is therefore important to first know whether or not the GST is responsible for the JDA. The main point is that the transfer of development rights is similar to that of the sale of real estate and must therefore fall within the competence of the GST. In this case, the taxpayer and the landowner have completed a JDA for the development of land into residential land, as well as amenities. The revenue rate between taxpayers and landowners is 25-75%. The development costs were borne by the taxpayer. The taxpayer also entered into an agreement with the customers for the sale of built-up land for remuneration. is transferred to the. the developer, less the value of the land transfer, if any, as referred to in paragraph 2 of Communication No.
11/2017-CT (R) of 28.06.2017 Mandatory In my last letter – Joint Development Agreement – Taxation under Income Tax and GST, published in April 2020, I discussed the tax aspects of the Joint Development Agreement (JDA) transactions in accordance with the Goods & Services Tax Act, 2017 (GST) and Income Tax Act 1961 in detail. . . .