GST exemption for development rights and lease premiums tied to residential projects; reverse charge applies for un booked apartments. The notification inserts provisions exempting GST on transfer of development rights or FSI and on upfront amounts for long term land leases used for construction of residential apartments, by allocating exemption pro rata based on carpet area of residential apartments in the project. Promoters must pay tax on the proportion attributable to apartments remaining un booked at completion or first occupation on a reverse charge basis, subject to capped liability; payment liability arises on completion or first occupation. Deeming rules for valuation of transfers and detailed definitions for apartment, promoter, project, carpet area and FSI are prescribed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST exemption for development rights and lease premiums tied to residential projects; reverse charge applies for un booked apartments.
The notification inserts provisions exempting GST on transfer of development rights or FSI and on upfront amounts for long term land leases used for construction of residential apartments, by allocating exemption pro rata based on carpet area of residential apartments in the project. Promoters must pay tax on the proportion attributable to apartments remaining un booked at completion or first occupation on a reverse charge basis, subject to capped liability; payment liability arises on completion or first occupation. Deeming rules for valuation of transfers and detailed definitions for apartment, promoter, project, carpet area and FSI are prescribed.
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