AAR held that construction services rendered by developer to...

AAR held that construction services rendered by developer to society members in exchange for development rights constitute a taxable supply under GST. The taxable value shall be determined by the market value of similar flats sold to independent buyers. GST liability is payable by the promoter on unsold flats at the time of completion certificate, with tax rates capped at 1% for affordable residential apartments and 5% for other residential apartments. Monetary considerations paid to existing members are not separately taxable, as they form part of the overall development rights consideration. The GST is calculated based on the value of area given free of cost, including amenities and parking, with tax becoming due on completion certificate or first occupation, whichever is earlier.