Central Tax Liability on Development Rights and Construction Services

The Central Government, under section 148 of the CGST Act, 2017, notifies specific classes of registered persons. Registered persons supplying development rights to developers, builders, or construction companies against construction services are included.

Also, those providing construction services against consideration in the form of development rights are covered.

Liability to pay central tax arises when the developer transfers possession or rights in the constructed structure to the development rights supplier.

The notification aims to streamline tax liability for development rights and construction services. Issued by Ruchi Bisht, Under Secretary to the Government of India. This measure enhances clarity and compliance in the real estate sector.