Gst rate for a person who purchase land , develops lay out and sells individual residential houses to unregistred persons.
If you sell the residential house after construction you don't have to charge any GST but if you transfer before completion GST would be 5% without ITC.
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Thank you
Dear Sir,
Hope you are doing well !!
Please elaborate your query.
In some cases, the land owner and builder/developer may have a mutual agreement for the construction project.
An agreement between a landowner and a real estate developer to construct new projects is called a Joint Development Agreement. In a joint development the capital, the builder carries out construction and legal work whereas the landowner provides the land.
GST liability will arise on both events.
1) Sale of Rights in land by Land Owner to developer.
2) Construction Service provided by developer to Land Owner.
Sale of immovable property is outside the scope of GST as per schedule III of section 7.
But if owner accepts advance for construction of house before issue of completion certificate, such transaction is liable for GST at 5%/1%.
Hi
If you're selling such independent houses after completion, there would be no GST implications.
However, if houses are sold before completion, 5%/1% GST, as applicable, shall have to be charged.
If the construction started after 01.04.201 then the rate is 5% if the houses would be sold before obtaining completion certificate or first occupancy. If the houses are sold i.e. entire consideration received after obtaining completion certificate or first occupancy then it would be exempt from GST.
Hi
If you are selling under construction property then only gst will apply. Rate would be 5% /1%.
Hope it helps
Hello,
If the person is selling the residential houses before completion or receiving any part of the consideration before the completion certificate, such sale would be taxable under GST.
Otherwise, if the person is selling after the completion of the residential property, it won't be covered under GST.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
