Whether development rights given to builder for construction and in consideration 40% flat contructed to be received. Whether development right giver has to pay gst?
Notification No.4/2018-Central Tax (Rate) dated 25.01.2018 notifies that person or persons Who supply development rights to a developer / builder etc., against a consideration, which may be in the form of construction service, is liable to be registered under CGST Act, 2017.
Therefore the person, who has supplied development rights to a developer in respect of his land, is liable to registration and payment of tax.
You can also refer Ruling of AUTHORITY FOR ADVANCE RULINGS, KARNATAKA in case of PATRICK BERNARDINZ D’SA, dated 28.11.2018.