Construction of Parking lot for Municipal corporation against TDR

[Ashish Diwedi]

We have started construction of parking lot in 2011. Against the construction of parking lot, we are supposed to get TDR from the Municipal Corporation. We have received OC for the same in Feb 2021. We have taken ITC in respect of inputs / input services that has gone in the construction of parking lot from July 2017. Are we supposed to pay GST on construction or parking lot? If yes, on what value?

[KASTURI SETHI]

It is not exempt. For valuation you will have to resort to Rule 30 or 31 of CGST Rules, 2017.

[Ashish Diwedi]

The possession of the Parking lot has happened in Feb 2021 when we received the completion certificate. We can take Chartered engineer certificate for the percentage of work completion in Pre GST era and Post GST era. Can we say that part service was rendered in pre GST regime and part in post GST regime and hence GST is payable only on the construction services in GST era?

[KASTURI SETHI]

No. See Sections 13 & 14 of CGST Act.

AI Summary

GST on construction of parking lot: valuation follows CGST rules and time of supply provisions govern taxability. The construction service of a parking lot exchanged for TDR is not exempt; valuation must follow CGST valuation provisions, relying on Rule 30 or 31. Time of supply and valuation provisions in the CGST framework (Sections 13 and 14) govern taxability across pre and post GST work and do not permit simple apportionment by engineer certification.