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TaxTMI 
What is the difference between Transferable Development Rights and Transfer of Development Rights, and GST implications under RCM?
GST on TDR under RCM payable by the Developer/Promoter in Real estate business
22 Nov 2025 
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GST on development rights: promoter pays under reverse charge; residential exemption applies proportionally to sold/unsold units.
Transfer of development rights by a landowner to a promoter is treated as a Construction Service taxable under GST, with tax payable by the promoter under the Reverse Charge Mechanism (commonly 18% on the value of development rights). Notification-based exemption limits apply to proportions used for residential apartments sold before completion, while tax under RCM is proportionately attributable to commercial components and unsold residential units at completion. (AI Summary)
Transfer of development rights by a landowner to a promoter is treated as a Construction Service taxable under GST, with tax payable by the promoter under the Reverse Charge Mechanism (commonly 18% on the value of development rights). Notification-based exemption limits apply to proportions used for residential apartments sold before completion, while tax under RCM is proportionately attributable to commercial components and unsold residential units at completion. (AI Summary)