GST exemption for TDR/FSI and long term lease in residential projects with reverse charge for unsold units. The amendment exempts GST on TDR/FSI transfers and upfront long term lease payments used for construction of residential apartments by applying a proportionate carpet area ratio to GST payable on those inputs; it imposes reverse charge tax on promoters for the proportion attributable to unsold residential apartments at completion or first occupation, subject to capped limits, and establishes deemed valuation rules for transfers in kind and for unbooked apartments at completion. Definitions for apartment, promoter, project, carpet area and FSI are inserted.
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Provisions expressly mentioned in the judgment/order text.
GST exemption for TDR/FSI and long term lease in residential projects with reverse charge for unsold units.
The amendment exempts GST on TDR/FSI transfers and upfront long term lease payments used for construction of residential apartments by applying a proportionate carpet area ratio to GST payable on those inputs; it imposes reverse charge tax on promoters for the proportion attributable to unsold residential apartments at completion or first occupation, subject to capped limits, and establishes deemed valuation rules for transfers in kind and for unbooked apartments at completion. Definitions for apartment, promoter, project, carpet area and FSI are inserted.
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