GST exemption for development rights and lease premiums with reverse charge tax on unsold residential inventory at completion. The amendment provides GST exemption on transfer of development rights/FSI and upfront amounts for long term leases for construction of residential apartments from 1 April 2019, calculated by pro rata carpet area share; promoters must pay tax on unsold residential portions on a reverse charge basis using a pro rata formula capped by specified percentages, with tax liability arising on issuance of completion certificate or on first occupation. Deeming rules fix value of TDR/FSI and unsold portions by reference to prices of similar apartments; key definitions are aligned to the Real Estate (Regulation and Development) Act.
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 with reverse charge tax on unsold residential inventory at completion.
The amendment provides GST exemption on transfer of development rights/FSI and upfront amounts for long term leases for construction of residential apartments from 1 April 2019, calculated by pro rata carpet area share; promoters must pay tax on unsold residential portions on a reverse charge basis using a pro rata formula capped by specified percentages, with tax liability arising on issuance of completion certificate or on first occupation. Deeming rules fix value of TDR/FSI and unsold portions by reference to prices of similar apartments; key definitions are aligned to the Real Estate (Regulation and Development) Act.
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