GST on supply of services of FSI by Municipal Corporation BMC

[Ashish Diwedi]

Dear SIr,

We have constructed parking lot and have received 2 FSI from the Municipal Corporation (i.e. BMC).

Is the transaction of supply of service by way of FSI liable to GST under RCM or is it exempt in terms of Noti. No. 12/2017 - Central Tax (Rate)?

AI Summary

Local authority exemption for FSI transfers may exclude GST, while reverse charge covers FSI-related construction services on unsold flats.
Whether consideration for transfer of Floor Space Index (FSI) is a taxable supply: transfers by a municipal corporation performing urban planning, land use regulation and building construction control may qualify for local authority exemption; separately, transfers of development rights/FSI in the real estate sector attract reverse charge mechanism for services related to construction on unsold flats, with RCM confined to the unsold portion.