GST exemption for development rights and long-term leases limits promoter reverse-charge liability on unbooked residential units at capped rates. Notification inserts entries 41A and 41B exempting GST on transfer of development rights/FSI and upfront long term lease consideration used for construction of residential apartments, with exemption apportioned by carpet area. Promoter must pay tax on reverse charge basis for the proportion of residential apartments remaining un booked at completion or first occupation, subject to prescribed caps; liability arises on the date of completion or first occupation. Deemed valuation rules equate in kind consideration and un booked apartment value to promoter's prevailing sale prices; key terms are defined or cross referenced to RERA.
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Provisions expressly mentioned in the judgment/order text.
GST exemption for development rights and long-term leases limits promoter reverse-charge liability on unbooked residential units at capped rates.
Notification inserts entries 41A and 41B exempting GST on transfer of development rights/FSI and upfront long term lease consideration used for construction of residential apartments, with exemption apportioned by carpet area. Promoter must pay tax on reverse charge basis for the proportion of residential apartments remaining un booked at completion or first occupation, subject to prescribed caps; liability arises on the date of completion or first occupation. Deemed valuation rules equate in kind consideration and un booked apartment value to promoter's prevailing sale prices; key terms are defined or cross referenced to RERA.
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