Case Law Details
In re Maddi Seetha Devi (GST AAR Telangana)
Q1. Whether transfer of land or transfer of development rights’ to the developer by the landowner is to be considered as receipt of consideration by the developer as per Notification No.04/2018-CT (Rate) dt.25.01.2018 and as per the clarifications issued after introduction of GST and prior thereto towards the construction of flats in the residential complex to be taken up by the developer for the landowner?
A1. Yes. Transfer of development rights by the landowner to the developer is consideration received by such developer for supply of construction service.
Q2. Whether the liability to pay GST or service tax as applicable arises on the developer immediately on receipt of development rights or immediately on conveyance of the flats to be constructed by way of an allotment letter?
A2. The liable to pay GST by the developer‑ promoter shall arise at the time of transfers possession or right in the constructed complex or constructed flats and not at the time of receipt of development rights.
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