Amendments to IGST Act: Taxation on Real Estate Transactions

New amendments under section 5(3) of the IGST Act, 2017, affect services related to real estate development. Notification No.10/2017- Integrated Tax (Rate) now includes services of transferring development rights and Floor Space Index (FSI) for project construction.

Long-term leases (30 years or more) of land against upfront payments or periodic rent for project construction are also covered. Definitions provided for crucial terms like "apartment," "promoter," "project," "Real Estate Project (REP)," "Residential Real Estate Project (RREP)," and "floor space index (FSI)."

Effective from April 1, 2019, directed by Pramod Kumar, Deputy Secretary to the Government of India.

Aimed at streamlining taxation in real estate transactions, aligning with regulations under the Real Estate (Regulation and Development) Act, 2016.

Enhances clarity and accountability in the real estate sector, contributing to transparency and compliance.