Joint Development by land owner and builder/developer :
In some cases, the land owner and builder/developer may have a joint venture for the construction project. In some cases, they may form a separate legal entity or they may operate as UJV (Unincorporated Joint Venture). In such cases, GST will be payable.
Para 2.7 of CBE&C Circular No. 151/2/2012-ST dated 10-2-2012 states as follows –
Joint Development Agreement Model : Under this model, land owner and builder/developer join hands and may either create a new entity or otherwise operate as an unincorporated association, on partnership/joint/collaboration basis, with mutuality of interest and to share common risk/profit together.
The new entity undertakes construction on behalf of landowner and builder/develop
Clarification : Circular 148/17/2011-ST dated 13-12-2011, particularly paragraphs 7, 8, 9 apply mutatis mutandis in this regard.