Question ID : 40883

144183

A Construction company has entered in to Development agreement before March 2019, and also has opted old scheme where it is required to pay GST @ 18% (12%) while availing ITC. Question is whether the Land owners can take benefit of notification released on 29.03.2019, where the GST liability is shifted to Developers under RCM ? If not, can they pay the GST on construction cost plus 10% under rule 30? because paying GST @ 12% on FMV is not financial feasible. Is there any precedent or case law? Thank you.

Rcm may not be possible. Cost + 10% could be adopted because it can be argued that omv is generally not available for real estate. Though needs to be judicially tested.