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[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION
3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 04/2019- Central Tax (Rate)
New Delhi, the 29
th
March, 2019
G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the
Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being
satisfied that it is necessary in the public interest so to do, on the recommendations of the
Council, hereby makes the following further amendments in the notification of the Government
of India, in the Ministry of Finance (Department of Revenue), No.12/2017- Central Tax (Rate),
dated the 28
th
June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide number G.S.R. 691(E), dated the 28
th
June, 2017, namely:-
In the said notification, -
(i) in the opening paragraph, for the word, brackets and figures “sub-section (1) of section 11”
the word, brackets and figures “, sub-section (3) and sub-section (4) of section 9, sub-section (1)
of section 11,sub-section (5) of section 15 and section 148,” shall be substituted;
(ii) in the Table, -
(a) after serial number 41 and the entries relating thereto, the following serial numbers and
entries shall be inserted, namely: -
(1) (2) (3) (4) (5)
“41A Heading
9972
Service by way of
transfer of development
rights (herein refer
TDR) or Floor Space
Index (FSI) (including
additional FSI) on or
after 1
st
April, 2019 for
construction of
residential apartments
by a promoter in a
project, intended for sale
to a buyer, wholly or
partly, except where the
entire consideration has
been received after
issuance of completion
certificate, where
required, by the
Nil Provided that the promoter shall be liable to
pay tax at the applicable rate, on reverse
charge basis, on such proportion of value of
development rights, or FSI (including
additional FSI), or both, as is attributable to
the residential apartments, which remain un-
booked on the date of issuance of completion
certificate, or first occupation of the project,
as the case may be, in the following manner -
[GST payable on TDR or FSI (including
additional FSI) or both for construction
of the residential apartments in the
project but for the exemption contained
herein] x (carpet area of the residential
apartments in the project which remain
un- booked on the date of issuance of
completion certificate or first occupation
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competent authority or
after its first occupation,
whichever is earlier.
The amount of GST
exemption available for
construction of
residential apartments in
the project under this
notification shall be
calculated as under:
[GST payable on TDR
or FSI (including
additional FSI) or both
for construction of the
project] x (carpet area of
the residential
apartments in the project
÷ Total carpet area of
the residential and
commercial apartments
in the project )
÷ Total carpet area of the residential
apartments in the project)
Provided further that tax payable in terms of
the first proviso hereinabove shall not exceed
0.5 per cent. of the value in case of
affordable residential apartments and 2.5 per
cent. of the value in case of residential
apartments other than affordable residential
apartments remaining un- booked on the date
of issuance of completion certificate or first
occupation
The liability to pay central tax on the said
portion of the development rights or FSI, or
both, calculated as above, shall arise on the
date of completion or first occupation of the
project, as the case may be, whichever is
earlier.
41B Heading
9972
Upfront amount (called
as premium, salami,
cost, price, development
charges or by any other
name) payable in respect
of service by way of
granting of long term
lease of thirty years, or
more, on or after
01.04.2019, for
construction of
residential apartments
by a promoter in a
project, intended for
sale to a buyer, wholly
or partly, except where
the entire consideration
has been received after
issuance of completion
certificate, where
required, by the
competent authority or
after its first occupation,
Nil Provided that the promoter shall be liable to
pay tax at the applicable rate, on reverse
charge basis, on such proportion of upfront
amount (called as premium, salami, cost,
price, development charges or by any other
name) paid for long term lease of land, as is
attributable to the residential apartments,
which remain un- booked on the date of
issuance of completion certificate, or first
occupation of the project, as the case may be,
in the following manner -
[GST payable on upfront amount (called
as premium, salami, cost, price,
development charges or by any other
name) payable for long term lease of land
for construction of the residential
apartments in the project but for the
exemption contained herein] x (carpet
area of the residential apartments in the
project which remain un- booked on the
date of issuance of completion certificate
or first occupation ÷ Total carpet area of
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whichever is earlier.
The amount of GST
exemption available for
construction of
residential apartments in
the project under this
notification shall be
calculated as under:
[GST payable on
upfront amount (called
as premium, salami,
cost, price, development
charges or by any other
name) payable for long
term lease of land for
construction of the
project] x (carpet area of
the residential
apartments in the project
÷ Total carpet area of
the residential and
commercial apartments
in the project).
the residential apartments in the project);
Provided further that the tax payable in terms
of the first proviso shall not exceed 0.5 per
cent. of the value in case of affordable
residential apartments and 2.5 per cent. of
the value in case of residential apartments
other than affordable residential apartments
remaining un- booked on the date of issuance
of completion certificate or first occupation.
The liability to pay central tax on the said
proportion of upfront amount (called as
premium, salami, cost, price, development
charges or by any other name) paid for long
term lease of land, calculated as above, shall
arise on the date of issue of completion
certificate or first occupation of the project,
as the case may be.
(iii) after paragraph 1, the following paragraphs shall be inserted, namely, -
“1A. Value of supply of service by way of transfer of development rights or FSI by a person to
the promoter against consideration in the form of residential or commercial apartments shall be
deemed to be equal to the value of similar apartments charged by the promoter from the
independent buyers nearest to the date on which such development rights or FSI is transferred to
the promoter.
1B. Value of portion of residential or commercial apartments remaining un-booked on the date
of issuance of completion certificate or first occupation, as the case may be, shall be deemed to
be equal to the value of similar apartments charged by the promoter nearest to the date of
issuance of completion certificate or first occupation, as the case may be.”
(iv) in paragraph 3 relating to Explanation, after clause (iv), the following clause shall be
inserted, namely: -
“(v) The term “apartment” shall have the same meaning as assigned to it in clause (e) under
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
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(vi) The term “affordable residential apartment” shall have the same meaning as assigned to it in
the notification No. 11/2017-Central Tax (Rate), published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) dated 28
th
June, 2017 vide GSR number 690(E)
dated 28
th
June, 2017, as amended.
(vii) The term “promoter” shall have the same meaning as assigned to it in clause (zk) under
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(viii) The term “project” shall mean a Real Estate Project or a Residential Real Estate Project.
(ix) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in clause
(zn) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(x) The term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet
area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the
apartments in the REP;
(xi) The term “carpet area” shall have the same meaning as assigned to it clause (k) under
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(xii) “an apartment booked on or before the date of issuance of completion certificate or first
occupation of the project” shall mean an apartment which meets all the following three
conditions, namely-
(a) part of supply of construction of the apartment service has time of supply on or before
the said date; and
(b) consideration equal to at least one instalment has been credited to the bank account of
the registered person on or before the said date; and
(c) an allotment letter or sale agreement or any other similar document evidencing booking
of the apartment has been issued on or before the said date.
(xiii) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor
area) to the size of the piece of land upon which it is built.”.
2. This notification shall come into force with effect from the 1
st
day of April, 2019.
[F. No.354/32/2019 -TRU]
(Pramod Kumar)
Deputy Secretary to the Government of India
Note: -The principal notification No. 12/2017 - Central Tax (Rate), dated the 28
th
June, 2017
was published in the Gazette of India, Extraordinary, vide number G.S.R. 691 (E), dated the
28
th
June, 2017 and was last amended by notification No. 28/2018 - Central Tax (Rate), dated
the 31
st
December, 2018 vide number G.S.R. 1272 (E), dated the 31
st
December, 2018.
