Where TDRs are taxable under GST Regime in case of builders?

[Mehak Malhotra]

GST excludes sale of land from its ambit ?

But Transferable Development Rights are right to the use of land for the development. Is this covered under gst ?

Secondly,

If this is covered under GST will this be eligible for Credit ?

[KASTURI SETHI]

Dear Querist,

Yes TDRs are taxable under GST. These fall under declared supplies mentioned in Schedule-II of Section 7CGST Act under Serial No.1 & 2--Transfer and Land & Building. GST @18% will be applicable with Full ITC. This is my interpretation and analysis.

[KASTURI SETHI]

SAC for TDR 999799 @18%.

AI Summary

Transferable development rights taxable under GST; attract the standard levy with entitlement to full input tax credit. TDRs are treated as taxable supplies under the Goods and Services Tax framework and characterised as declared supplies relating to transfer and land & building transactions in Schedule II to Section 7. The applicable GST rate is applied with entitlement to full input tax credit. The Service Accounting Code recorded for TDRs is 999799.