GST on Transfer of Rights in Under-Construction Property: A Legal and Practical Analysis
GST on Transfer of Rights in Under-Construction Property: A Legal and Practical Analysis By Murali Krishna Ravuri, Taxurity — Tax & Audit Consultancy, Bengaluru Preface One of the most litigated questions in GST on real estate is deceptively simple: when does a transfer involving an under-construction property attract GST, and when does it not? The answer lies not in whether a completion certificate has been issued, but in whether a construction service obligation exists between the transferor and the transferee at the time of the agreement. This article examines the legal framework governing GST on transfers of rights in under-construction property, analyses the landmark Karnataka High Court ruling in Rohan Corporation India Pvt. Ltd. v. Union of India and Others [TS-924-HC(KAR)-2024], and addresses a frequently misunderstood point: the mere existence of a GST registration in the hands of the transferor does not, by itself, attract GST on a transfer of immovable prope...