Applicability of GST on Transferable Development Rights (TDRs)

By | May 25, 2018
(Last Updated On: May 25, 2018)

GST Shastra : Mystery of applicability of GST on Transferable Development
Rights (TDR)

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· Introduction – What is TDR?
When an owner of land transfers his rights of developing a land to a government, local authority or corporation, they  use the same land for infrastructure projects such as road widening, metro rail projects, park, garden, schools, new  roads orforany other projects of public utility. DRC (Development rights certificate) will then be issued to owner of  the land, the main purpose of whole process is to acquire the required amount of land in hassle free manner. Now this
DRC will allow the land owner an additional built up area in return of the area for which he has relinquish his rights  and enables him to develop the given area by himself of transfer his rights for consideration.  DRC issued to land owner, which is transferable, is known as transferable development rights (TDR), which can be  transferred to another entity.
· Legal ambiguity :

a) Whether supply of TDR is to be treated as supply of goods or supply of services?

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