GST on Real Estate – Key provisions, valuation, JDAs, TDR/FSI, time of supply, ITC and important judicial developments.
GST on real-estate transactions involves a range of provisions governing construction, sale of apartments, development rights, land and long-term leases. This topic covers the statutory framework under the CGST Act, including levy, supply, valuation and the distinction between taxable construction services and transactions outside GST. It further examines the GST implications of Joint Development Agreements, TDR/FSI transfers, construction services and different JDA structures. The applicable GST rates, reverse charge mechanism, 80% procurement requirement and time-of-supply provisions are also discussed. The treatment of long-term leases, preferential location charges and developed land is considered along with the relevant CBIC clarifications. Particular emphasis is placed on input tax credit restrictions under Section 17(5) and the impact of the Safari Retreats ruling. The topic also considers significant judicial developments such as Munjal Bhatt,
Gujarat Chamber, Provident Housing, Prahitha and Shrinivasa Realcon.
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