Is GST rate applicable on Transfer of Development Rights(TDR) in real estate

 

GST rate applicable on FSI and long term lease of land in construction field

 

Is GST rate applicable on Transfer of Development Rights(TDR) or FSI or long term lease of land used for construction of commercial apartment? What is the GST rate applicable on TDR or FSI in new projects? What is the rate of GST applicable on transfer of development rights, FSI and long term lease of land in construction of residential apartment?  

 

Supply of TDR or FSI or long term lease of land used for the construction of residential apartments in  a  project  that  are  booked  before  issue  of completion   certificate   or   first   occupation   is exempt. Supply of TDR or FSI or long term lease of land, on   such   value   which   is   proportionate   to construction of residential apartments that  remain un-booked  on  the  date  of  issue  of  completion certificate or first occupation, would attract GST at the rate of 18%, but the amount of tax shall be limited   to1%   or   5%of   value   of   apartment depending upon whether the residential apartments for  which  such  TDR  or  FSI  is  used,  in  the affordable  residential  apartment  category  or  in other than affordable residential apartment.

 

TDR or FSI or long term lease of land used for construction of commercial apartments shall attract GST of 18%.

 

The above shall be applicable to supply of TDR or FSI or long term lease of land used in the new projects where new rate of 1% or 5% is applicable.     

 

 

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