Realtors may get GST relief on development rights

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A new service tax ruling may offer real estate developers relief on the Goods & Services Tax (GST) liability on transfer of rights in a property for development purposes (TDR). Ruling in favour of DLF Commercial Properties, a decision by Chandigarh tribunal last week held that an owner transferring rights to a promoter to develop his property should be seen as ‘benefits arising out of transfer of an immovable property,’ and hence not be subject to service tax.

Tax practitioners and GST experts TOI spoke to say that this brings relief to all developers with pending litigations under the erstwhile service tax regime, and also helps the sector argue for the analogy to be applied for not levying GST on TDR.

Read More at: https://timesofindia.indiatimes.com/business/india-business/realtors-may-get-gst-relief-on-development-rights/articleshow/69510104.cms