Q. 203 I have doubt regarding gst on JDA transaction as per JDA agreement some flats are alloted to the land owner IS gst payable for land owner flats ? if gst payable who is liable to pay? If gst payable is land owner if he not paid is it builder liable to pay? Land owner flats are sold to some other person is it liable for gst?

Ans. Under joint development agreement, landowner is required to transfer development rights to the developer. In case of the transfer of constructed property in exchange for providing land to the landowner, the landowner would be leviable to pay tax. The developer or builder will charge GST and deposit to the government. In case of further selling of constructed property, there will be independent liability of the landowner to discharge GST.

Q. 202 One new client came to me with a query. He is doing Labour Contract for individual house and construction of individual house in his own land and sell both. In the past his turnover is more than 50 lakhs. is it mandatory to take gst registration and show exempted turnover? or else he continues without taking gst, his previous auditor advised him not necessary to take gst registration. Is it correct? Kindly advise

Ans. The entry no. 11 of the exemption notification no. 12/2017- CTR exempts the services by way of pure labour contracts of construction, erection, commissioning or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex from GST. In accordance with section 23 of the CGST Act, any person engaged exclusively in the business of supplying goods or services or both, that are wholly exempt from tax is not liable for registration under GST. Hence, in purview of the above provisions, the said contractor is not liable for registration under GST. However, apart from above mentioned services, the contractor will be liable for registration under GST.

Q. 201 Supply of ballast, linking of railway tracks and transportation of tracks is a composite supply under supply of ballast or a works contract service?? secondly what if billing is done for different item differently ?

Ans. A composite supply comprises of: · Two or more taxable supplies · Are naturally bundled · One of which is a principal supply Further, if consumers expect such services as a package, the majority of service providers providing similar bundles of services and nature of the services are naturally bundled then it will be termed as composite supply. However, the above-mentioned services seem to be supplied independently and hence, these cannot be formed as composite supply. Analysis of works contract: Section 2(119) of the CGST Act, 2017 “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.” Under GST, “works Contract” has been restricted to any work related to an “Immovable Property”. Further, para 6 (a) of Schedule II of the CGST Act, works contracts as defined in CGST Act, shall be treated as a supply of services. Thus, there is a separate marking of a works contract as a supply of service under GST. It is advised to take a detailed opinion to have better clarity.