BHUBANESWAR: The commissionerate of commercial tax (CT) and GST in Cuttack has identified an outstanding GST liability of approximately Rs 10 crore related to a significant housing project undertaken by a promoter in collaboration with the Cuttack Development Authority (CDA).
This amount pertains to unpaid taxes on the transfer of development rights (TDR) for a land parcel designated for private development. Investigators noted that while other dues have been cleared, this liability remains unsettled.
As detailed in the tax evasion report, the project operates under a joint development agreement, where the developer has built affordable housing consisting of 550 units for the economically weaker sections (EWS) and 320 units for the low-income group (LIG) at Naranpur, Cuttack.
The project reached completion in September 2023, and was executed in exchange for rights over 3.63 acres of prime land in sectors 8 and 11 in Cuttack for private residential and commercial development, in line with model III of the ‘Housing for All’ initiative.
According to the report, “The derived price of the developer’s area amounts to AHP capital cost (Rs 88.31 crore) + project development fee (Rs 83.77 lakh) – concessional grant (Rs 33.80 crore) = Rs 55.34 crore. Therefore, the consideration for the transfer of developmental rights is Rs 55.34 crore, leading to a GST of Rs 9,96,25,860.”
Despite settling a GST of Rs 1.32 crore on construction services and paying over Rs 26 lakh in interest for delayed compliance, the TDR liability remains unresolved, the report indicated. Officials also pointed out incorrect input tax credit (ITC) entries during the 2022–23 period.
The CT and GST enforcement wing in Cuttack has escalated the matter to the Directorate General of GST Intelligence (DGGI) in the Bhubaneswar zonal unit for a deeper investigation into potential evasion and misuse of ITC. Enforcement officers noted that adjudication will move forward once clarifications are received from the central authority.
