Applicability of GST RCM on TDR

[Kalpesh Shah]

Respected Seniors & Experts

I have a Querry Relating to GST RCM on TDR as below :

Facts :

My client is a Builder Developer. He has purchased a Land by entering into Conveyance Agreement. He has also purchased TDR for which will be used for construction of Additional floors. but nothing as such is mentioned in the TDR Agreement.

Building is of Ground + First Floor (Commercial Units ) & Upper 9 floors for Residential units.

My question is :

Whether GST RCM is liable for Construction of Commercial Area with respect to Purchase of TDR ?

When calculating RCM in respect of unbooked Residential Units, I need to consider Whole constructed area or only upper floors ?

Thank you in Advance

AI Summary

Developer's TDR Purchase Triggers Complex GST Reverse Charge Calculation for Mixed-Use Building Construction Under Section 9(3) A builder developer purchased Transfer of Development Rights (TDR) for constructing additional floors in a mixed-use building with commercial and residential units. The key legal issue involves GST Reverse Charge Mechanism (RCM) applicability. GST RCM is liable for commercial construction using TDR, and for unbooked residential units, calculation involves proportional allocation based on carpet area, subject to tax rate caps of 1-5% depending on residential unit type.