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Is gst applicable on sale of tdr ( fungible fsi)?

S S Dahale ( Agri and business) (439 Points)

23 April 2018

Is GST is applicable on sale of TDR-DRC ( fungible FSI) received from Munc.authority? if yes what is HSN code? at what % it has to be collected by TDR owner from its BUYER-BUILDER/DEVELOPER, as said Builder is going to sale those FLATS (as extra FSI-loaded TDR )in the market , and will be levying GST on it ( collecting it from prospective flat buyers), There will be NO reciprocation of GST , if GST is not collected by TDR owner from that BUILDER.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160775 Points)
Replied 23 April 2018

As of today...... not applicable (an option in lieu of land/Immovable property). But Government wants to bring it in GST ambit......

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Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 23 April 2018

Yes sh. dhirajlal ji is correct

As to Entry 2(a) of Schedule II Vs. Entry 5 of Schedule III of CGST Act, 2017 –

Schedule III of CGST Act, 2017 which prescribes certain supply to be treated neither as supply of goods nor supply of service includes sale of land and building and hence not leviable to GST.

Further, schedule II of CGST Act, 2017 makes it mandatory to treat any lease, tenancy, easement, license to occupy land as a supply of service.

So in reference above , it is neither a tenancy, nor a licence to occupy , so far it is not cover under Goods & Service Tax Act

3 Like