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

GST rate on unsold flats: competing views on treatment of development rights versus concessional residential exclusion at completion.
Issue: Whether GST on unsold flats at completion certificate should apply on development-rights value without land deduction or under a concessional residential rate excluding land. Commentary records two competing positions: one applying a concessional rate to eligible residential projects (excluding land value and denying input tax credit), and another treating development rights as taxable at the standard development-rights rate without permitting the land-value one third deduction but subject to a practical cap tied to the flat's sale value.