According to my view Landowner is required to pay GST on sale of his share of flats while the property is under construction. Land owner needs to take GST registration and charge such GST to the buyer of flat. The ultimate liability becomes the buyer’s.
The primary liability to pay GST on landlord share of constructed area is on the supplier of service namely the developer. However as GST is a destination based levy to be borne by consumer, the developer could collect from landlord and pay GST to Govt especially when there is specific clause in JDA that tax such as GST to be paid extra by landowner to developer. If you sell the flat after receiving the completion certificate and after you receive the possession of flat from builder you don’t need to pay GST on such transaction.
Now if we turn whether the same is responsibility of land owner or of a developer, which entirely depending upon how your terms are decided with developer. however, it is pertinent to note that payment of GST is the responsibility of supplier of service i.e. developer by collecting it from the receiver. so accordingly you can check at your end.GST will be applicable only in this case only on the share of land you transferred to builder for some flats and for that builder would collect GST from you and pay to government.
Reference: The law governing the case is Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The GST journey began in the year 2000 when a committee was set up to draft law. It took 17 years from then for the Law to evolve.