2025-VIL-191-AAR
  1. Home
  2. 2025-VIL-191-AAR

SGST Advance Ruling Authority

GST – Kerala AAR - Joint Development Agreement (JDA), GST applicability on landowner, Transfer of development rights (TDR) - Applicant entered into a Joint Development Agreement (JDA) with a landowner for the construction of a residential apartment complex. As per the terms of the JDA, the applicant will construct 39 residential apartments, out of which 11 apartments will constitute the landowner's share - Whether GST is applicable to the landowner's share of constructed residential flats – HELD - The transfer of development rights (TDR) by the landowner to the developer/promoter constitutes a taxable supply under the GST law. The construction of the residential apartments, including the landowner's share, by the developer/promoter is also a taxable supply of service. Therefore, GST is applicable to the landowner's share of constructed residential flats - For the construction services provided by the developer/promoter to the landowner, the applicable GST rate is 5% without Input Tax Credit, as per Notification No. 03/2019 dated 29.03.2019. The value of the construction service shall be deemed to be the value of similar apartments sold to independent buyers near the date of transfer of development rights, as per Para 2A of Notification No. 03/2019 - Additionally, the developer/promoter is liable to pay GST at 18% under reverse charge mechanism on the portion of the development rights attributable to the residential apartments that remain un-booked as on the date of issuance of the completion certificate or first occupation, whichever is earlier, as per Notification Nos. 05/2019 and 06/2019 dated 29.03.2019 – Ordered accordingly - GST on Development Rights under RCM – HELD - As per Section 9 of the CGST Act, 2017, read with Notification Nos. 11/2017 & 13/2017 as amended and 04/2019, GST at 18% applies to the transfer of development rights (TDR) by a landowner to a promoter, payable by the promoter under reverse charge. However, TDR used for construction of residential apartments is exempt, except for the portion relating to un-booked units as on the date of completion certificate or first occupation.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?