Page 144 - GSTL_26th March 2020_Vol 34_Part 4

654 GST LAW TIMES [ Vol. 34
the form of construction service or against monetary consideration, GST liability
shall arise on date of issuance of completion certificate.
3.6 In view of the above, applicant feels that the transactions of transfer
of development rights are taxable under GST and to determine the rate of tax, the
rate notification is required to be referred.
3.7 The GST rates for services have been prescribed in the Notification
No. 11/2017-Central Tax (Rate), dated 28-6-2017 wherein there is no specific ref-
erence to the services of transfer of TDR/Additional FSI.
3.8 In Notification 4/2019-C.T. (Rate), dated 29 March, 2019 i.e. notifi-
cation providing that the service by way of transfer of development
rights/Additional FSI would be exempt subject to certain conditions, the Head-
ing of 9972 has been mentioned (sic) against the services by way of transfer of
development rights. Hence the GST rate as applicable to Heading 9972 would be
applicable in the present case. Alternatively, the supply of service by way of
transfer of TDR/Additional FSI would be covered under Entry 35 (being other
miscellaneous services not elsewhere specified) to the said Notification.
3.9 The applicant has finally concluded that, if the underlying transac-
tions are taxable under GST then GST is payable at 18% (CGST 9% and SGST
9%).
1 3. Contention - As per the jurisdictional officer :
The submissions made by the jurisdictional office is as follows :-
3.1 The jurisdictional officer has reproduced the definitions of “goods”,
‘services’ and has submitted that the scope of supply of services is very wide.
The transaction of TDRs could be treated as “service.”
3.2 As per Notification No. 5/2019-C.T. (Rate), dated 29-3-2019, which
amends Notification No. 13/2017-C.T. (Rate), dated 28-6-2017, supply of TDRs is
made taxable under reverse charge.
3.3 As per Notification No. 4/2018-C.T. (Rate), dated 25-1-2018,
amended by Notification No. 23/2019, dated 30-9-2019 GST is leviable on supply
of Development Rights & liability to pay Central Tax shall arise at the time of
transfer of the constructed structure to the person supplying Development
Rights.
3.4 As per Notification No. 4/2019-C.T. (Rate), dated 29-3-2019 which
amends Notification No. 12/2017-C.T. (Rate), dated 28-6-2017, it can be said that
sale of TDRs or Additional FSI is a supply of service which is taxable on reverse
charge basis.
4. Hearing :
Preliminary hearing in the matter was held on 20-11-2019. Sh. Nitin
Shah, Advocate, appeared and requested for admission of their application. Ju-
risdictional Officer Sh. Sachin Gaikwad, State Tax Officer (C-311) Pune-2, also
appeared and submitted written submissions.
The application was admitted and called for final hearing on 12-12-2019.
Sh. Nitin Shah, Advocate, appeared, made oral and written submissions. Juris-
dictional Officer Sh. Sachin Gaikwad, State Tax Officer (C-311) Pune-2 along with

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1 Paragraph number as per official text.
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