Value of Development Rights in the hand of land owner promoter for discharge of GST under RCM

[hubert fernandes]

In formula prescribed under first proviso to Entry 41A of Notfication 12/2017- the Revenue vide F.No/354/32/2019 -dated 14/5/2019 has clarified that GST shall b e payable @ 18% on Development rights.

What value shall be adapted by the developer towards "Value of Development Rights" for discharge of liability under RCM? vis a vis the formula ie GST payable on TDR or FSI (including additinal FSI) or both for construction of the project * carpet area of residential apartments / total carpet area of residential and commercial apartment in the project

Regards

Hubert

AI Summary

Value of Development Rights determined under GST for reverse charge: open market value, development service value, or cost plus margin.
Determination of the Value of Development Rights for GST under reverse charge: use the open market value of development rights where available; if not, use the value of the development service received by the landowner/promoter; if neither is ascertainable, adopt cost plus ten percent as the taxable value for GST.