GST on transfer of development rights: developer liable under reverse charge; sale of developed plots treated as land, separate infrastructure charges taxable.
Transfer of development rights under a revenue share JDA triggers GST on reverse charge payable by the promoter when development rights are not used for residential apartments; sale of developed plots as a consolidated transaction is treated as sale of land and does not attract GST. Separate infrastructure development charges constitute taxable works/contract services and attract GST. ITC on GST paid to contractors is available only if title to common infrastructure is passed to buyers or their association; otherwise ITC is not admissible. Revenue share receipts attract TDS withholding prudently applied on payments and are taxable as business income for both parties. (AI Summary)

GST exemption on long-term land lease limited to industrial or financial infrastructure where ownership and use conditions are met.
Entry 41 exempts upfront amounts for long-term leases of land used for industrial plots or for development of infrastructure for financial business, available only when the lessor meets the prescribed public-ownership threshold (directly or through a wholly owned intermediary). The exemption is conditional: plots must be used for the stated activities in designated areas; State Governments monitor compliance; original and subsequent parties are jointly and severally liable for GST with interest and penalty on breach; and lease agreements must record the conditional exemption and undertakings to comply. (AI Summary)

Transfer of development rights treated as a service: promoter liable under reverse charge with residential exemption conditions.
Transfer of development rights (including additional FSI and TDR) is a supply of service and, under Notification 13/2017 (as amended), tax on such transfer is payable by the promoter under the reverse charge mechanism. For development rights utilised for construction of residential units on or after 1 April 2019, Notification 12/2017 (as amended) exempts the promoter from GST to the extent of the residential carpet area provided sale occurs before completion or first occupation; otherwise the promoter remains liable proportionately for the commercial component and for unsold inventory as computed under the notification. (AI Summary)

Transfer of development rights: GST treatment hinges on whether TDR is immovable property or taxable service.
The GST characterisation of redevelopment transactions depends on whether the developer's receipts for constructing new accommodation and assigning additional built-up area amount to a supply liable to GST or represent a transfer of transferable development rights and related benefits arising from land, which statutory definitions and several judgments treat as immovable property; the outcome requires analysis of the redevelopment agreement's allocation of consideration, obligations and rights between developer, society and flat owners. (AI Summary)

IGST on imports: post GST imports permit IGST credit for builders subject to bill of entry disclosure and return filing.
Post GST imports are subject to IGST levied on imports treated as inter state supplies, calculated on the value of imported goods plus basic customs duty and applicable additional duties; basic customs duty remains non creditable while IGST and applicable cess credits may be claimed by builders subject to statutory filing and Bill of Entry disclosure requirements in GST returns. (AI Summary)