GST on TDR (Transferrable Development Rights)

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....ST on TDR (Transferrable Development Rights)<br> Query (Issue) Started By: - Kalpesh Shah Dated:- 13-10-2025 Last Reply Date:- 25-10-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>My client purchase a TDR&nbsp;(Transferrable Development Rights) on 05/02/2019 for constructing a RREP. So, he will be liable to pay GST on RCM basis on TDR purchase from Unregistered Seller on unsold area ....

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....of the project. The Tax officer has issued show cause notice regarding the payment of GST on TDR being the project was started for which TDR purchased from 01/07/2019 and completed on 25/06/2021 as per OC despite TDR was purchased before 01/04/2019. Please give your valuable opinion on above matter supporting with any case law or judgement. Thanks & Regards Reply By Sadanand Bulbule: The Reply:....

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.... &nbsp;The TDR in question was purchased on 05-02-2019, i.e., prior to 01-04-2019. The point of supply of TDR was completed before 01/04/2019. So the later date of Occupancy Certificate is immaterial for applicability of 01/04/2019 notification. In terms of Notification No. 04/2019-Central Tax (Rate) dated 29-03-2019, the RCM liability on TDR/FSI arises only for transfers made on or after 01-04....

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....-2019. Reply By Sadanand Bulbule: The Reply: Also Refer Patna High Court judgement dated 05/05/2025 rendered in Shashi Ranjan Constructions Pvt Ltd Vs. Union of India reported in 2025(5) TMI 633. This judgement clarifies "time of supply of constructions services"&nbsp;by the developer to the landowner in lieu of TDR, irrespective of JDA date [including pre-GST period]. Reply By Shilpi Jain: Th....

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....e Reply: Since TDR was purchased before 1.4.2019 - the liability for TDR should be on the person who sold the TDR and not the developer Reply By Jeyo Tak: The Reply: Since the TDR was bought before 01/04/2019, GST generally shouldn't apply, but if the project started after 01/07/2019, RCM might still be triggered.<br> Discussion Forum - Knowledge Sharing ....