TaxTMI 
TaxTMI 
Is GST applicable on sale of Development Right Certificate?
GST on DRC
28 Apr 2023 
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GST applicability on development rights: divergent views on whether transfer of DRC is taxable or treated as immovable property.
The taxability of Development Rights Certificates turns on their legal characterisation: if a DRC/TDR is a benefit arising out of land it is treated as immovable property and falls outside GST supply coverage; conversely, if characterized as a service or transferable development entitlement it may be taxable, with consequences under the reverse charge mechanism and specific notification exclusions determining who bears GST liability. (AI Summary)
The taxability of Development Rights Certificates turns on their legal characterisation: if a DRC/TDR is a benefit arising out of land it is treated as immovable property and falls outside GST supply coverage; conversely, if characterized as a service or transferable development entitlement it may be taxable, with consequences under the reverse charge mechanism and specific notification exclusions determining who bears GST liability. (AI Summary)