TaxTMI 
TaxTMI 
GST ON LAND DEVELOPMENT RIGHTS
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....ST ON LAND DEVELOPMENT RIGHTS<br> Query (Issue) Started By: - KUNAL DESAI Dated:- 25-4-2020 Last Reply Date:- 27-5-2020 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>There are following 2 queries from my end. 1. Whether GST RCM would be applicable on FSI paid to Local Authority as per Entry -4 of 12/2017-CT(R)? Whether will it make any difference if "Local Authority" was remo....
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....ved from the entry vide Notification No. 14/2018-CT(R) dated 26.07.2018 so as to change position from 26/07/2018 to 31/03/2019? 2. What would be the position of taxability in the case of Land Development Rights given to Developer for Developed Plots wherein Landowner and Developer firm are related party transactions meaning thereby Landowner are partner in the partnership firm of the developer fi....
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....rm? What would be the valuation for such Rights ignoring the principle that the GST is not to be paid on Land or Plots thereof? Reply By Rachit Agarwal: The Reply: FSI paid to Local Authority- Such Payment are exempted. Such activity fall under Serial No- 2 of 12th schedule of Article 243W of the Constitution and exempted under Serial No 4 of the Notification No- 12/2017 dated 28.06.2017 taxabi....
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....lity in the case of Land Development Rights given to Developer- Land Development Rights are in nature of benefit arising from Land. Benefit arising from Land is treated as Immovable Property. As the supply of Immovable Property falls under Schedule III to Section 7 of CGST Act, 2017 hence such supply is nieher goods nor services. However AAR has treated the same as supply of service. If the asse....
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....ssee treats the same as service, Value of supply of service by way of transfer of development rights or FSI by a person to the promoter against consideration in the form of residential or commercial apartments shall be deemed to be equal to the value of similar apartments charged by the promoter from the independent buyers nearest to the date on which such development rights or FSI is transferred ....
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....to the promoter- Notification No- 4/2019-C.T. (Rate), dated 29-3-2019 Reply By KUNAL DESAI: The Reply: Dear Rachit, 1. Whether will it make any difference if "Local Authority" was removed from the entry vide Notification No.14/2018-CT(R) dated 26.07.2018 so as to change position from 26/07/2018 to 31/03/2019? 2. What would be the valuation for such Rights ignoring the principle that ....
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....the GST is not to be paid on Land or Plots thereof? Reply By KUNAL DESAI: The Reply: and most importantly in my 2nd Question, Land Owners and Developers are related parties. Reply By alok rungta: The Reply: dear sir is only services (with out supply to any goods) taken against land development and bill amount of services being capitalized , in above situation is Input Credit is Eligible to a....
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....vail or should be Inventories, please clarify Reply By alok rungta: The Reply: dear sir is only services (without supply of any goods) taken against land development and bill amount of services being capitalized , in above situation is Input Credit is Eligible to avail or should be Inventories, please clarify<br> Discussion Forum - Knowledge Sharing ....