GST on DRC

[Ashika Agarwal]

Is GST applicable on sale of Development Right Certificate?

AI Summary

Debate on GST Applicability for Development Right Certificates: Taxable or Considered Immovable Property? Reverse Charge Mechanism Discussed. A discussion on the applicability of GST on the sale of Development Right Certificates (DRC) reveals differing opinions. Some participants argue that the transfer of development rights is taxable under GST, while others contend that it involves immovable property and should not attract GST. References to legal definitions and court rulings suggest that benefits arising from land, such as DRCs, are considered immovable property. The debate also touches on whether GST applies to the issuance or sale of DRCs, with some suggesting that GST is applicable under reverse charge mechanism (RCM) for business entities. The discussion highlights the complexity and varied interpretations within the GST framework.