GST Payable on Free Flats as They Constitute Exchange for Development Rights

In re M/s. Sharda Vastu Nirmitee Pvt. Ltd. (GST AAR Maharashtra) The Authority for Advance Ruling (AAR), Maharashtra examined GST implications in a redevelopment project involving transfer of development rights (TDR) and provision of constructed flats and other benefits to existing society members. The applicant, a real estate developer, had entered into a development agreement in 2016, followed by supplementary agreements in 2021 and 2024, which materially altered the terms relating to allocation of flats, additional area, and benefits to members and the society. The primary issue was whether...