GST Exemption for TDR and FSI in Residential Projects, Conditions Apply for Post-Completion Receipts and Un-booked Units

Services related to the transfer of development rights (TDR) or Floor Space Index (FSI) for residential apartment construction are exempt from GST starting April 1, 2019, unless the entire consideration is received post-completion certificate or first occupation. The GST exemption amount is calculated based on the proportion of residential apartment carpet area to the total carpet area. Promoters must pay tax on un-booked residential apartments at project completion or first occupation, capped at 1% for affordable housing and 5% for others. The tax liability arises upon project completion or first occupation, whichever occurs first.