GST exemption for development rights and long term lease premiums, with reverse charge tax on un booked residential units. The amendment exempts State GST for transfer of development rights/FSI and upfront long term lease payments for construction of residential apartments from 1 April 2019, calculated by apportioning GST payable on those inputs to the residential carpet area share of the project. Promoters must pay tax on the proportion attributable to residential apartments that remain un booked on completion or first occupation on reverse charge basis, subject to statutory caps; liability arises on completion or first occupation. Deemed valuation and defined terms for apartment, promoter, carpet area, REP/RREP 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 long term lease premiums, with reverse charge tax on un booked residential units.
The amendment exempts State GST for transfer of development rights/FSI and upfront long term lease payments for construction of residential apartments from 1 April 2019, calculated by apportioning GST payable on those inputs to the residential carpet area share of the project. Promoters must pay tax on the proportion attributable to residential apartments that remain un booked on completion or first occupation on reverse charge basis, subject to statutory caps; liability arises on completion or first occupation. Deemed valuation and defined terms for apartment, promoter, carpet area, REP/RREP and FSI are prescribed.
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