Notification on Liability for Integrated Tax on Development Rights and Construction Services
Legal Authority: Notification issued under section 20 of the Integrated Goods and Services Tax Act, 2017, and section 148 of the Central Goods and Services Tax Act, 2017.
Registered Persons Defined: Two classes of registered persons notified:
Those supplying development rights against construction services.
Those supplying construction services against transfer of development rights.
Liability Trigger: Liability to pay integrated tax arises when possession or rights in constructed property are transferred through conveyance deed or similar instrument.
Clarification Provided: Timing of tax liability specified to ensure clarity in taxation for both parties involved.
Issued By: Ruchi Bisht, Under Secretary to the Government of India.