GST Payable on TDR

[hubert fernandes]

In as area sharing model and In terms of Notification 04/2019 dated 29/3/2019 in the formula for the amount of GST exemption what constitutes the GST PAYABLE ? whether the GST payable amount has to be restricted to the land owners area or the entire area in the project. Please provide clarity on the subject as per statue or any case laws or advance rulings.

Regards

Hubert

[Shilpi Jain]

TDR is generally considered to be given to the extent of the share of the Developer.

On the Landowner's share - only construction is done by the Developer and it is handed over back to the Landowner.

[hubert fernandes]

Thank you madam.

So first the GST Payable has to restricted and computed on the Builders area and then all the calculations as per Notification 04/2019 dated 29/3/2019 shall follow.

Would appreciate if there are any advance rulings on the said interpretation.

Regards

[hubert fernandes]

can anyone in the forum provide me AAO in the case of M/s. Pride constructions versus Dy Assistant commissioner of STGSR, State of Andhra Pradesh. - 2022 (2) TMI 292 - ANDHRA PRADESH HIGH COURT

AI Summary

GST on TDR: liability computed on developer's area, not the entire project, under area sharing arrangements.
In area sharing TDR arrangements, TDR is treated as attributable to the developer's share; the landowner's returned built area is distinguished from the developer's supply. Therefore GST payable for purposes of Notification 04/2019 should be restricted and computed on the developer/builder's area, and then the Notification's calculation methodology applied.