GST Exemption for Long-Term Land Leases: No Tax on Upfront Payments for 30+ Year Leases from April 2019

The GST exemptions applicable to services related to long-term leases of land for constructing residential apartments, effective from April 1, 2019. It specifies that GST is exempt on upfront payments for leases of 30 years or more, provided the entire consideration is received before the completion certificate or first occupation. The exemption is calculated based on the proportion of the residential carpet area to the total project area. Promoters must pay tax on unbooked apartments at completion or first occupation, capped at 1% for affordable and 5% for other residential units.