RATE OF GST ON TDS IN RESPECT OF UNSOLD FLAT

[NAMAN DOKANIA]

What will be the rate of gst on flats remaining unsold at the time of completion certificate issuance. Will it be:

A) 18% on proportionate area unsold on the value of Development right(i.e. Value of similar flat at the time of tdr agreement) or

B) 18% - (1/3rd of land) i.e 12% on proportionate are unsold on the value of Development right (i.e value of similar flat at the time of tdr agreement)

In short whether value of land be deducted from the tdr rate??

AI Summary

Clarification on GST rates for unsold flats: 18% on development rights, 5% on residential projects with land deduction. A discussion on the Goods and Services Tax (GST) rate applicable to unsold flats at the time of completion certificate issuance explored whether the rate should be 18% on the value of development rights or 12% after deducting land value. Shilpi Jain clarified that for residential projects eligible for TDR exemption, the GST could be 5% on the sale value, accounting for land deduction. YAGAY and SUN confirmed the 5% rate for certain residential projects, excluding land value. Deepak Gulati stated the GST rate for development rights is 18%, with a maximum of 5% on the flat's value.