GST on supply of services of FSI by Slum Rehabilitation authority (SRA)

[Ashish Diwedi]

Dear Sir,

We have constructed 176 flats of 60 Sqm as a part of SRA scheme. Against which, we shall receive FSI from the Slum Rehabilitation Authority.

Is the transaction of supply of FSI by SRA liable to GST under RCM or is it exempt in terms of provisions contained in Notifi. No. 12/2017 - Central Tax (RATE)?

[Shilpi Jain]

If SRA is a govt. authority and its services fall under 243W or G then exemption would exist

AI Summary

Supply of FSI by SRA may be GST-exempt if SRA qualifies as government authority and falls under exemption entries. Whether transfer of floor space index (FSI) by a Slum Rehabilitation Authority (SRA) is taxable under GST on reverse charge basis or is exempt under the rate notification depends on whether the SRA qualifies as a government authority and its services fall within the specified exemption entries; if so, the supply of FSI by the SRA is treated as exempt under the notification rather than taxable under RCM.