GST exemption for TDR and FSI transfers allows project-level relief while imposing reverse charge on unbooked residential units. The notification amends State GST rules to exempt GST on transfer of development rights (TDR)/FSI and on upfront lease premiums used for construction of residential apartments, with the exemption apportioned by carpet area. Promoters must pay tax on a reverse charge basis for proportions attributable to un-booked residential apartments on completion certificate issuance or first occupation, subject to prescribed caps. Deemed valuation rules equate consideration for TDR/FSI or un-booked apartments to comparable apartment values charged by the promoter near the relevant dates, and defined terms from real estate law are incorporated.
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Provisions expressly mentioned in the judgment/order text.
GST exemption for TDR and FSI transfers allows project-level relief while imposing reverse charge on unbooked residential units.
The notification amends State GST rules to exempt GST on transfer of development rights (TDR)/FSI and on upfront lease premiums used for construction of residential apartments, with the exemption apportioned by carpet area. Promoters must pay tax on a reverse charge basis for proportions attributable to un-booked residential apartments on completion certificate issuance or first occupation, subject to prescribed caps. Deemed valuation rules equate consideration for TDR/FSI or un-booked apartments to comparable apartment values charged by the promoter near the relevant dates, and defined terms from real estate law are incorporated.
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