GST on TDR proportionate to commercial apartments in RREP

[Narayan Pujar]

Hi,

While GST exemption on Transfer of Development Rights (TDR) apply to sold residential apartments, they do not extend to commercial apartments. However, in the context of a Residential Real Estate Project (RREP), commercial units are treated similarly to residential units. Why, then, is there a differential treatment in GST between residential and commercial units with regard to TDR exemptions?

AI Summary

GST Exemptions on TDR in Real Estate: Call for Standardization Between Residential and Commercial Units; Impact on JDAs Discussed A discussion on the Goods and Services Tax (GST) treatment of Transfer of Development Rights (TDR) in Residential Real Estate Projects (RREP) highlights the inconsistency in GST exemptions between residential and commercial units. While residential units benefit from GST exemptions on TDR, commercial units do not, leading to increased costs without credit for GST paid. A participant suggests that the government should standardize the GST treatment for commercial units to align with residential units, proposing a 5% GST on unsold units without credit. Another participant queries the popularity and legal implications of land sales in Joint Development Agreements (JDAs) compared to direct land sales.