The Maharashtra Appellate Authority of Advance Ruling (AAAR) declared the AAR’s governing and endured that 18% GST rate 
The petitioner was Mr Vilas Chandanmal Gandhi, who is the owner of the property lie amid of PMC and wanted to construct the property partnered with M/s. Amar Builders and Developers share the profits on the sale of residential and commercial projects which is to be developed through construction.
According to the reconciliation done between the applicant and the developer. The rights have been assigned to the developer by the applicant for constructing the land residential or commercial project. The developer has acknowledged paying the compensation on the sale of 45% of the developed projects. Rs 3,60,00,000 is given as security refund within a month after completion of the project.
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The petitioner asked the advance ruling on the matter whether GST is applicable on sale of TDR/ FSI held as compensation for abandoning the common rights in property in courses of Development Control Regulations and allowed with context to the article of the contract dated 18 December 2017 recorded between the Applicant and PMC expressed with Development Control Regulations and if it yes, under GST what will be the suitable rate of GST.
In the context of TDR or FSI, the petitioner challenged AAR tax cannot be applicable within GST law as it comes under the immovable property and is entitled under Schedule III of CGST Act, 2017 that is explained on the service and transactions which is not seated as the supply of Goods and Services 
The AAAR consisting of Sanjeev Kumar and Rajesh Kumar Sharma while refusing the disagreement of the petitioner supported the AAR’s ruling and speaks that TDR or FSI would be applicable in GST under heading 9972 at the rate of 18% GST as designated beneath the Notification No. 11/2017- Central Tax (Rate), dated June 28, 2017.
