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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. 03/2019-Central Tax (Rate)
New Delhi, the 29
th
March, 2019
G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3) and (4) of
section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section
16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central
Government, on the recommendations of the Council, and on being satisfied that it is necessary
in the public interest so to do, hereby makes the following further amendments in the
notification of the Government of India, in the Ministry of Finance (Department of Revenue)
No.11/2017- 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. 690(E), dated the
28
th
June, 2017, namely:-
In the said notification, -
(i) in the opening paragraph,
(a) after the word, brackets and figures “conferred by sub-section (1),”, the word,
brackets and figures “sub-section (3) and sub-section (4)” shall respectively be
inserted;
(b) the word “and” after the words and figures “sub-section (5) of section 15” shall be
substituted by the symbol “,”;
(c) after the word, brackets and figures “section (16)”, the words and figure “and section
148” shall be inserted;
(ii) in the Table, -
(a) against serial number 3, for item (i), and the entries relating thereto in column (3), (4)
and (5), the following items and entries shall be substituted, namely, -
Table
(3) (4) (5)
“(i) Construction of affordable residential
apartments by a promoter in a Residential Real
Estate Project (herein after referred to as
RREP) which commences on or after 1
st
April,
2019 or in an ongoing RREP in respect of
which the promoter has not exercised option to
pay central tax on construction of apartments
at the rates as specified for item (ie) or (if)
below, as the case may be, in the manner
prescribed therein, intended for sale to a buyer,
wholly or partly, except where the entire
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Provided that the central tax at the rate
specified in column (4) shall be paid in
cash, that is, by debiting the electronic
cash ledger only;
Provided also that credit of input tax
charged on goods and services used in
supplying the service hasnot been taken
except to the extent as prescribed in
Annexure I in the case of REP other than
RREP and in Annexure II in the case of
RREP;
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consideration has been received after issuance
of completion certificate, where required, by
the competent authority or after its first
occupation, whichever is earlier.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
Provided also that the registered person
shall pay, by debit in the electronic credit
ledger or electronic cash ledger, an
amount equivalent to the input tax credit
attributable to construction in a project,
time of supply of which is on or after 1
st
April, 2019, which shall be calculated in
the manner as prescribed in the Annexure
I in the case of REP other than RREP and
in Annexure II in the case of RREP;
Provided also that where a registered
person (landowner- promoter) who
transfers development right or FSI
(including additional FSI) to a promoter
(developer- promoter) against
consideration, wholly or partly, in the
form of construction of apartments, -
(i) the developer- promoter shall pay tax
on supply of construction of
apartments to the landowner-
promoter, and
(ii) such landowner – promoter shall be
eligible for credit of taxes charged
from him by the developer promoter
towards the supply of construction of
apartments by developer- promoter to
him, provided the landowner-
promoter further supplies such
apartments to his buyers before
issuance of completion certificate or
first occupation, whichever is earlier,
and pays tax on the same which is not
less than the amount of tax charged
from him on construction of such
apartments by the developer-
promoter.
Explanation. -
(i) “developer- promoter” is a promoter
who constructs or converts a building
into apartments or develops a plot for
sale,
(ia) Construction of residential apartments
other than affordable residential apartments by
a promoter in an RREP which commences on
or after 1
st
April, 2019 or in an ongoing RREP
in respect of which the promoter has not
exercised option to pay central tax on
construction of apartments at the rates as
specified for item (ie) or (if) below, as the case
may be, in the manner prescribed therein,
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,
whichever is earlier.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
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(ib) Construction of commercial apartments
(shops, offices, godowns etc.) by a promoter in
an RREP which commences on or after 1
st
April, 2019 or in an ongoing RREP in respect
of which the promoter has not exercised option
to pay central tax on construction of
apartments at the rates as specified for item
(ie) or (if) below, as the case may be, in the
manner prescribed therein, 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, whichever is earlier.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
3.75
(ic) Construction of affordable residential
apartments by a promoter in a Real Estate
Project (herein after referred to as REP)
other than RREP, which commences on or
0.75
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after 1
st
April, 2019 or in an ongoing REP
other than RREP in respect of which the
promoter has not exercised option to pay
central tax on construction of apartments at the
rates as specified for item (ie) or (if) below, as
the case may be, in the manner prescribed
therein, 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,
whichever is earlier.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
(ii) “landowner- promoter” is a promoter
who transfers the land or
development rights or FSI to a
developer- promoter for construction
of apartments and receives
constructed apartments against such
transferred rights and sells such
apartments to his buyers
independently.
Provided also that eighty percent of value
of input and input services, [other than
services by way of grant of development
rights, long term lease of land (against
upfront payment in the form of premium,
salami, development charges etc.) or FSI
(including additional FSI), electricity,
high speed diesel, motor spirit, natural
gas], used in supplying the service shall
be received from registered supplier only;
Provided also that inputs and input
services on which tax is paid on reverse
charge basis shall be deemed to have been
purchased from registered person;
Provided also that where value of input
and input services received from
registered suppliers during the financial
year (or part of the financial year till the
date of issuance of completion certificate
or first occupation of the project,
whichever is earlier) falls short of the said
threshold of 80 per cent., tax shall be paid
by the promoter on value of input and
input services comprising such shortfall at
the rate of eighteen percent on reverse
charge basis and all the provisions of the
Central Goods and Services Tax Act,
2017 (12 of 2017) shall apply to him as if
he is the person liable for paying the tax in
relation to the supply of such goods or
services or both;
Provided also that notwithstanding
anything contained herein above, where
cement is received from an unregistered
person, the promoter shall pay tax on
supply of such cement at the applicable
(id) Construction of residential apartments
other than affordable residential apartments by
a promoter in a REP other than a RREP
which commences on or after 1
st
April, 2019 or
in an ongoing REP other than RREP in respect
of which the promoter has not exercised option
to pay central tax on construction of
apartments at the rates as specified for item
(ie) or (if) below, as the case may be, in the
manner prescribed therein, 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, whichever is earlier.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
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rates on reverse charge basis and all the
provisions of the Central Goods and
Services Tax Act, 2017 (12 of 2017), shall
apply to him as if he is the person liable
for paying the tax in relation to such
supply of cement;
(Please refer to the illustrations in
annexure III)
Explanation. -
1. The promoter shall maintain project
wise account of inward supplies from
registered and unregistered supplier and
calculate tax payments on the shortfall at
the end of the financial year and shall
submit the same in the prescribed form
electronically on the common portal by
end of the quarter following the financial
year. The tax liability on the shortfall of
inward supplies from unregistered person
so determined shall be added to his output
tax liability in the month not later than the
month of June following the end of the
financial year.
2. Notwithstanding anything contained in
Explanation 1 above, tax on cement
received from unregistered person shall be
paid in the month in which cement is
received.
3. Input Tax Credit not availed shall be
reported every month by reporting the
same as ineligible credit in GSTR-3B
[Row No. 4 (D)(2)].
(ie) Construction of an apartment in an
ongoing project under any of the schemes
specified in sub-item (b), sub-item (c), sub-
item (d), sub-item (da) and sub-item (db) of
item (iv); sub-item (b), sub-item (c), sub-item
(d) and sub-item (da) of item (v); and sub-item
(c) of item (vi), against serial number 3 of the
Table, in respect of which the promoter has
exercised option to pay central tax on
construction of apartments at the rates as
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Provided that in case of ongoing project,
the registered person shall exercise one
time option in the Form at Annexure IV to
pay central tax on construction of
apartments in a project at the rates as
specified for item (ie) or (if), as the case
may be, by the 10
th
of May, 2019;
Provided also that where the option is not
exercised in Form at annexure IV by the
10
th
of May, 2019, option to pay tax at the
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specified for this item.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service)
rates as applicable to item (i) or (ia) or (ib)
or (ic) or (id) above, as the case may be,
shall be deemed to have been exercised;
Provided also that invoices for supply of
the service can be issued during the period
from 1
st
April 2019 to 10
th
May 2019
before exercising the option, but such
invoices shall be in accordance with the
option to be exercised.;
(if) Construction of a complex, building, civil
structure or a part thereof, including,-
(i) commercial apartments (shops, offices,
godowns etc.) by a promoter in a REP
other than RREP,
(ii) residential apartments in an ongoing
project, other than affordable residential
apartments, in respect of which the
promoter has exercised option to pay
central tax on construction of apartments at
the rates as specified for this item in the
manner prescribed herein,
but excluding supply by way of services
specified at items (i), (ia), (ib), (ic), (id) and
(ie) above 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,
whichever is earlier.
Explanation. -For the removal of doubt, it is
hereby clarified that, supply by way of services
specified at items (i), (ia), (ib), (ic), (id) and
(ie) in column (3) shall attract central tax
prescribed against them in column (4) subject
to conditions specified against them in column
(5) and shall not be levied at the rate as
specified under this entry.
(Provisions of paragraph 2 of this notification
shall apply for valuation of this service
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(b) against serial number 3, -
a. item (ii) and the entries relating thereto in columns (3), (4) and (5) shall be
omitted;
b. in item (iv) in column (3), -
(1) after the figures “2017”, the words, brackets, figures and letters “other than
that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above” shall be
inserted;
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c. in item (v) in column (3), -
(1) after the figures “2017”, the words, brackets, figures and letters “other than
that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above” shall be
inserted;
d. after item (v) and entries relating thereto in column (3), (4) and (5), the following
items and entries shall be inserted, namely, -
(3) (4) (5)
(va) Composite supply of works contract as
defined in clause (119) of section 2 of the Central
Goods and Services Tax Act, 2017, other than
that covered by items (i), (ia), (ib), (ic), (id), (ie)
and (if) above, supplied by way of construction,
erection, commissioning, installation, completion,
fitting out, repair, maintenance, renovation, or
alteration of affordable residential apartments
covered by sub- clause (a) of clause (xvi) of
paragraph 4 below, in a project which commences
on or after 1
st
April, 2019, or in an ongoing
project in respect of which the promoter has not
exercised option to pay central tax on
construction of apartments at the rates as
specified for item (ie) or (if), as the case may be,
in the manner prescribed therein,
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Provided that carpet
area of the affordable
residential apartments
as specified in the
entry in column (3)
relating to this item, is
not less than 50 per
cent. of the total
carpet area of all the
apartments in the
project;
Provided also that for
the purpose of
determining whether
the apartments at the
time of supply of the
service are affordable
residential apartments
covered by sub-
clause (a) of clause
(xvi) of paragraph 4
below or not, value of
the apartments shall
be the value of similar
apartments booked
nearest to the date of
signing of the contract
for supply of the
service specified in
the entry in column
(3) relating to this
item;
Provided also that in
case it finally turns
out that the carpet area
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of the affordable
residential apartments
booked or sold before
or after completion,
for which gross
amount actually
charged was forty five
lakhs rupees or less
and the actual carpet
area was within the
limits prescribed in
sub- clause (a) of
clause (xvi) of
paragraph 4 below,
was less than 50 per
cent. of the total
carpet area of all the
apartments in the
project, the recipient
of the service, that is,
the promoter shall be
liable to pay such
amount of tax on
reverse charge basis
as is equal to the
difference between the
tax payable on the
service at the
applicable rate but for
the rate prescribed
herein and the tax
actually paid at the
rate prescribed
herein”;
e. in item (vi) in column (3), after the figures “2017”, the words, brackets, and
figures “other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if)
above” shall be inserted’;
f. in item (xii) in column (3), for the entry, the following entry shall be substituted,
namely: -
“(xii) Construction services other than (i), (ia), (ib), (ic), (id), (ie), (if), (iii), (iv),
(v), (va), (vi), (vii), (viii), (ix), (x) and (xi) above.
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Explanation. - For the removal of doubt, it is hereby clarified that, supply by
way of services specified at items (i), (ia), (ib), (ic), (id), (ie) and (if) in column
(3) shall attract central tax prescribed against them in column (4) subject to
conditions specified against them in column (5) and shall not be levied at the
rate as specified under this entry.”;
(c) against serial number 16,in item (ii) in column (3), for the word, brackets and letters
“sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv);
sub-item (b), sub-item (c), sub-item(d) and sub-item (da)of item (v); and sub-item (c)
of item (vi)”, the word, brackets figures and letters “ (i) (ia), (ib), (ic), (id), (ie) and
(if)” shall be substituted;
(d) after serial number 38 in column (1) and the entries relating thereto in column (2),
(3), (4) and (5) the following serial number and entries shall be inserted, namely: -
(1) (2) (3) (4) (5)
“39. Chapter 99 Supply of services other than services by
way of grant of development rights, long
term lease of land (against upfront
payment in the form of premium, salami,
development charges etc.) or FSI
(including additional FSI) by an
unregistered person to a promoter for
construction of a project on which tax is
payable by the recipient of the services
under sub- section 4 of section 9 of the
Central Goods and Services Tax Act, 2017
(12 of 2017), as prescribed in notification
No. 07 / 2019- Central Tax (Rate), dated
29
th
March, 2019, published in Gazette
of India vide G.S.R. No. _, dated 29
th
March, 2019.
Explanation. -
This entry is to be taken to apply to all
services which satisfy the conditions
prescribed herein, even though they may
be covered by a more specific chapter,
section or heading elsewhere in this
notification.
9 -”;
(iii) in paragraph 2,-
(a) for the words, brackets, letters and figures “sub-item (b), sub-item (c), sub-item (d),
sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d)
and sub-item (da) of item (v); and sub-item (c) of item (vi),” the word, brackets,
letters and figures “ (i) (ia), (ib), (ic), (id), (ie) and (if)” shall be substituted;
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(b) in the Explanation, after the words “this paragraph” the words “and paragraph 2A
below” shall be inserted;
(iv) after paragraph 2, the following paragraph shall be inserted, namely, -
“2A. Where a registered person transfers development right or FSI (including additional
FSI) to a promoter against consideration, wholly or partly, in the form of construction of
apartments, the value of construction service in respect of such apartments shall be deemed
to be equal to the Total Amount charged for similar apartments in the project from the
independent buyers, other than the person transferring the development right or FSI
(including additional FSI), nearest to the date on which such development right or FSI
(including additional FSI) is transferred to the promoter, less the value of transfer of land, if
any, as prescribed in paragraph 2 above.”
(v) in paragraph 4 relating to Explanation, after clause (xii), the following clauses shall be
inserted, namely: -
“(xiii) an apartment booked on or before the 31
st
March, 2019 shall mean an apartment
which meets all the following three conditions, namely- (a) part of supply of construction of
which has time of supply on or before the 31
st
March, 2019 and (b) at least one instalment
has been credited to the bank account of the registered person on or before the 31
st
March,
2019 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 31
st
March, 2019;
(xiv) the term “apartment” shall have the same meaning as assigned to it in clause (e) of
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(xv) the term “project” shall mean a Real Estate Project or a Residential Real Estate Project;
(xvi) the term “affordable residential apartment” shall mean, -
(a) a residential apartment in a project which commences on or after 1
st
April, 2019, or in
an ongoing project in respect of which the promoter has not exercised option in the
prescribed form to pay central tax on construction of apartments at the rates as
specified for item (ie) or (if) against serial number 3, as the case may be, having carpet
area not exceeding 60 square meter in metropolitan cities or 90 square meter in cities
or towns other than metropolitan cities and for which the gross amount charged is not
more than forty five lakhs rupees.
For the purpose of this clause, -
(i) Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi,
Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata
and Mumbai (whole of MMR) with their respective geographical limits
prescribed by an order issued by the Central or State Government in this regard;
(ii) Gross amount shall be the sum total of; -
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A. Consideration charged for the services specified at item (i) and (ic) in
column (3) against sl. No. 3 in the Table;
B. Amount charged for the transfer of land or undivided share of land, as
the case may be including by way of lease or sub lease; and
C. Any other amount charged by the promoter from the buyer of the
apartment including preferential location charges, development
charges, parking charges, common facility charges etc.
(b) an apartment being constructed in an ongoing project under any of the schemes
specified in sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of
item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and
sub-item (c) of item (vi), against serial number 3 of the Table above, in respect of
which the promoter has not exercised option to pay central tax on construction of
apartments at the rates as specified for item (ie) or (if) against serial number 3, as the
case may be.
(xvii) the term “promoter” shall have the same meaning as assigned to it in in clause (zk) of
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(xviii) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in
in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16
of 2016);
(xix) 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;
(xx) the term “ongoing project” shall mean a project which meets all the following
conditions, namely-
(a) commencement certificate in respect of the project, where required to be issued by
the competent authority, has been issued on or before 31
st
March, 2019, and it is
certified by any of the following that construction of the project has started on or
before 31
st
March, 2019:-
(i) an architect registered with the Council of Architecture constituted under the
Architects Act, 1972 (20 of 1972); or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or
development or planning authority.
(b) where commencement certificate in respect of the project, is not required to be issued
by the competent authority, it is certified by any of the authorities specified in sub-
clause (a) above that construction of the project has started on or before the 31
st
March, 2019;
(c) completion certificate has not been issued or first occupation of the project has not
taken place on or before the 31
st
March, 2019;
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(d) apartments being constructed under the project have been, partly or wholly, booked
on or before the 31
st
March, 2019.
Explanation.- For the purpose of sub- clause (a) and (b) above , construction of a
project shall be considered to have started on or before the 31
st
March, 2019, if the
earthwork for site preparation for the project has been completed and excavation for
foundation has started on or before the 31
st
March, 2019.
(xxi) "commencement certificate" means the commencement certificate or the building
permit or the construction permit, by whatever name called issued by the competent
authority to allow or permit the promoter to begin development works on an immovable
property, as per the sanctioned plan;
(xxii) "development works" means the external development works and internal
development works on immovable property;
(xxiii) "external development works" includes roads and road systems landscaping, water
supply, seweage and drainage systems, electricity supply transformer, sub-station, solid
waste management and disposal or any other work which may have to be executed in the
periphery of, or outside, a project for its benefit, as may be provided under the local laws;
(xxiv) "internal development works" means roads, footpaths, water supply, sewers, drains,
parks, tree planting, street lighting, provision for community buildings and for treatment and
disposal of sewage and sullage water, solid waste management and disposal, water
conservation, energy management, fire protection and fire safety requirements, social
infrastructure such as educational health and other public amenities or any other work in a
project for its benefit, as per sanctioned plans;
(xxv) the term "competent authority” as mentioned in definition of “commencement
certificate” and “residential apartment” , means the local authority or any authority created
or established under any law for the time being in force by the Central Government or State
Government or Union Territory Government, which exercises authority over land under its
jurisdiction, and has powers to give permission for development of such immovable
property;
(xxvi) The term “carpet area” shall have the same meaning assigned to it in in clause (k) of
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(xxvii) the term “Real Estate Regulatory Authority” shall mean the Authority established
under sub- section (1) of section 20 (1) of the Real Estate (Regulation and Development)
Act, 2016 (No. 16 of 2016) by the Central Government or State Government;
(xxviii) “project which commences on or after 1
st
April, 2019” shall mean a project other
than an ongoing project;
(xxix) “Residential apartment” shall mean an apartment intended for residential use as
declared to the Real Estate Regulatory Authority or to competent authority;
(xxx) “Commercial apartment” shall mean an apartment other than a residential apartment;
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(xxxi) “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. 11/2017 - Central Tax (Rate), dated the 28
th
June, 2017
was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the
28
th
June, 2017 and was last amended by notification No. 30/2018-Central Tax (Rate), dated
the 31
st
December, 2018 vide number G.S.R. 1271 (E), dated the 31
st
December, 2018.
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Annexure I
Real estate project (REP) other than Residential Real estate project (RREP)
Input tax credit attributable to construction of residential portion in a real estate
project (REP) other than residential real estate project (RREP), which has time of supply on
or after 1
st
April, 2019, shall be calculated project wise for all projects which commence on
or after 1
st
April, 2019 or ongoing projects in respect of which the promoter has not
exercised option to pay central tax on construction of apartments at the rates as specified for
item (ie) or (if) against serial number 3, as the case may be, in the prescribed manner, before
the due date for furnishing of the return for the month of September following the end of
financial year 2018-19, in the following manner:
1. Where % completion as on 31
st
March, 2019 is not zero or where there is
inventory in stock
(a) Input tax credit on inputs and input services attributable to construction of residential
portion in a REP, which has time of supply on or after 1
st
April, 2019, may be denoted
as Tx. Tx shall be calculated as under:
Tx=T-Te
Where,
(i) T is the total ITC availed (utilized or not) on inputs and input services used in
construction of the REP from 1
st
July, 2017 to 31
st
March, 2019 including
transitional credit taken on 1
st
July, 2017;
(ii) Te is the eligible ITC attributable to (a) construction of commercial portion and
(b) construction of residential portion, in the REP which has time of supply on or
before 31
st
March, 2019;
(b) Te shall be calculated as under:
Te=Tc+Tr
Where, -
Tc is the ITC attributable to construction of commercial portion in the REP,
calculated as under:
Tc =T * (carpet area of commercial apartments in the REP/ total carpet area of
commercial and residential apartments in the REP) and
Tr is the ITC attributable to construction of residential portion in the REP which has
time of supply on or before 31
st
March, 2019 and which shall be calculated as under,
Tr= T* F1 * F2 * F3* F4
Where, -
14
F1= Carpet area of residential apartments in REP
Total carpet area of commercial and residential apartments in the REP
Total carpet area of residential apartment booked on or before 31
st
March, 2019
F2 =
Total carpet area of the residential apartment in REP
Such Value of supply of construction of residential apartments
booked on or before 31
st
March, 2019 which has time of supply on or
before 31
st
March, 2019
F3 =
Total value of supply of construction of residential apartments
booked on or before 31
st
March, 2019
(F3 is to account for percentage invoicing of booked residential apartments)
F4= 1
% Completion of construction as on 31
st
March, 2019
Illustration: where one- fifth (twenty percent) of the construction has been completed, F4
shall be 100 ÷ 20 = 5.
Explanation: “% Completion of construction as on 31
st
March, 2019” shall be the same as
declared to the Real Estate Regulatory Authority in terms of section 4 and section 11 of Real
Estate (Regulation and Development) Act, 2016 (16 of 2016) and where the same is not
required to be declared to the Real Estate Regulatory Authority, it shall be got determined
and certified by an architect registered with the Council of Architecture constituted under
the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution
of Engineers (India).
(c) A registered person shall have the option to calculate ‘Te’ in the manner prescribed
below instead of the manner prescribed in (b) above,-
Te shall be calculated as under:
Te = Tc + T1 + Tr
Where, -
Tc is the ITC attributable to construction of commercial portion in the REP,
calculated as under:
15
Tc =T3 * (carpet area of commercial apartments in the REP/ total carpet area of
commercial and residential apartments in the REP);
Wherein
T3 = T- (T1 + T2)
T1 = ITC attributable exclusively to construction of commercial portion in the REP
T2 = ITC attributable exclusively to construction of residential portion in the REP
and
Tr is the ITC attributable to construction of residential portion in the REP which has
time of supply on or before 31.03.2019 and which shall be calculated as under,
Tr = (T3 + T2)* F1 * F2 * F3* F4
or
Tr = (T- T1)* F1 * F2 * F3* F4
(d) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of
central tax, State tax, Union territory tax and integrated tax.
(e) Where, Tx is positive, i.e. Te<T, the registered person shall pay, by debit in the
electronic credit ledger or electronic cash ledger, an amount equal to the difference between
T and Te. Such amount shall form part of the output tax liability of the registered person and
the amount shall be furnished in FORM GST ITC- 03.
Explanation: The registered person may file an application in FORM GST DRC- 20,
seeking extension of time for the payment of taxes or any amount due or for allowing
payment of such taxes or amount in installments in accordance with the provisions of
section 80. The commissioner may issue an order in FORM GST DRC- 21 allowing the
taxable person further time to make payment and/or to pay the amount in such monthly
installments, not exceeding twenty-four, as he may deem fit.
(f) Where Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC
on goods and services received on or after 1
st
April, 2019 for construction of residential
portion in the REP, for which he shall not otherwise be eligible, to the extent of difference
between Te and T.
(g) The registered person may calculate Tc and utilize credit to the extent of Tc for
payment of tax on commercial apartments, till the complete accounting of Tx is carried out
and submitted.
(h) Where percentage completion is zero but ITC has been availed on goods and
services received for the project on or prior to 31
st
March, 2019, input tax credit attributable
to construction of residential portion which has time of supply on or after 1
st
April, 2019,
shall be calculated and the amount equal to Tx shall be paid or taken credit of, as the case
16
may be, as prescribed above, with the modification that percentage completion for
calculation of F4 shall be taken as the percentage completion which, as certified by an
architect registered with the Council of Architecture constituted under the Architects Act,
1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers
(India), can be achieved with the input services received and inputs in stock as on 31
st
March, 2019.
2. Where % completion as on 31st March, 2019 is zero but invoicing has been
done having time of supply before 31st March, 2019, and no input services or inputs
have been received as on 31st March, 2019, “Te” shall be calculated as follows: -
(a) Input tax credit on inputs and input services attributable to construction of residential
portion in a REP, which has time of supply on or before 31
st
March, 2019 may be denoted as
Te which shall be calculated as under,
Te = Tc + Tr
Where, -
Tc is the ITC attributable to construction of commercial portion in the REP, calculated as
under:
Tc =Tn* (carpet area of commercial apartments in the REP/ total carpet area of commercial
and residential apartments in the REP) and
Tr is the ITC attributable to construction of residential portion in the REP which has time of
supply on or before 31
st
March, 2019 and which shall be calculated as under,
Tr = Tn* F1 * F2 * F3
Where, -
Tn= Tax paid on such inputs and input services on which ITC is available under the CGST
Act, received in 2019-20 for construction of REP
F1, F2 and F3 shall be the same as in para 1 above
(b) The registered person shall be eligible to take ITC on goods and services received on
or after 1
st
April, 2019 for construction of residential portion in the REP, for which he shall
not otherwise be eligible, to the extent of the amount of Te.
(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax,
State tax, Union territory tax and integrated tax.
3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall
be determined in the following situations as under:
(i) where percentage invoicing is more than the percentage completion and the
difference between percentage invoicing (per cent. points) and the percentage
completion (per cent. points) of construction is more than 25 per cent. points; the
17
value of percentage invoicing shall be deemed to be percentage completion plus 25
percent. points;
(ii) where the value of invoices issued on or prior to 31
st
March, 2019 exceeds the
consideration actually received on or prior to 31
st
March, 2019 by more than 25 per
cent. of consideration actually received; the value of such invoices for the purpose
of determination of percentage invoicing shall be deemed to beactual consideration
received plus 25 percent. of the actual consideration received; and
(iii) where, the value of procurement of inputs and input services prior to 1
st
April,
2019 exceeds the value of actual consumption of the inputs and input services used
in the percentage of construction completed as on 31
st
March, 2019 by more than 25
percent. of value of actual consumption of inputs and input services, the
jurisdictional commissioner or any other officer authorized in this regard may fix
the Te based on actual per unit consumption of inputs and input services based on
the documents duly certified by a chartered accountant or cost accountant submitted
by the promoter in this regard, applying the accepted principles of accounting.
Illustration 1:
A B C D
1No. of apartments in the project 100 units
2No. of residential apartments in the project 75 units
3Carpet area of the residential apartment 70 sqm
4Total carpet area of the residential apartments C2 * C3 5250sqm
5value of each residential apartment 0.60crore
6Total value of the residential apartments C2 * C5 45.00crore
7No. of commercial apartments in the project 25 units
8Carpet area of the commercial apartment 30 sqm
9Total carpet area of the commercial apartments C7 * C8 750 sqm
10Total carpet area of the project (Resi + Com) C4 + C9 6000sqm
11
Percentage completion as on 31.03.2019 [as declared to RERA or determined
by chertered engineer] 20%
12No of residential apartments booked before transition 40 units
13Total carpet area of the residential apartments booked before transitionC12 * C3 2800sqm
14Value of booked residential apartments C5 * C12 24 crore
15
Percentage invoicing of booked residential apartments on or before
31.03.2019 20%
16Total value of supply of residential apartments having t.o.s. prior to transitionC14 * C15 4.8crore
17ITC to be reversed on transition, Tx= T- Te
18Eligible ITC (Te)= Tc + Tr
19T (*see notes below) 1 crore
20
Tc= T x (carpet area of commercial apartments in the REP/ total carpet area
of commercial and residential apartments in the REP)
C19 * (C9/ C10) 0.125crore
21Tr= T x F1 x F2 x F3 x F4
22F1 C4 / C10 0.875
23F2 C13 / C4 0.533
24F3 C16 / C14 0.200
25F4 1/ C11 5
26Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C250.467crore
27Eligible ITC (Te)=Tc + Tr C26 + C20 0.592crore
28ITC to be reversed on transition, Tx= T- Te C19 - C27 0.408crore
Details of a REP (Res + Com)
Sl. No
* Note:-
1. The value of T at C19 has been estimated for illustration based on weighted average tax on inputs.
2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or
commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T.
18
Illustration 2:
[F. No.354/32/2019-TRU]
(Pramod Kumar) A B C D
1No. of apartments in the project 100 units
2No. of residential apartments in the project 75 units
3Carpet area of the residential apartment 70 sqm
4Total carpet area of the residential apartments C2 * C3 5250 sqm
5value of each residential apartment 0.60 crore
6Total value of the residential apartments C2 * C5 45.00crore
7No. of commercial apartments in the project 25 units
8Carpet area of the commercial apartment 30 sqm
9Total carpet area of the commercial apartments C7 * C8 750 sqm
10Total carpet area of the project (Resi + Com) C4 + C9 6000 sqm
11
Percentage completion (Pc) as on 31.03.2019 [as declared to RERA or
determined by chertered engineer] 20%
12No of residential apartments booked before transition 40 units
13Total carpet area of the residential apartments booked before transitionC12 * C3 2800 sqm
14Value of booked residential apartments C5 * C12 24 crore
15
Percentage invoicing of booked residential apartments on or before 31.03.2019 60%
16Total value of supply of residential apartments having t.o.s. prior to transitionC14 * C15 14.4 crore
17ITC to be reversed on transition, Tx= T- Te
18Eligible ITC (Te)= Tc + Tr
19T (*see notes below) 1 crore
20
Tc= T x (carpet area of commercial apartments in the REP/ total carpet area of
commercial and residential apartments in the REP)
C19 * (C9/ C10) 0.125crore
21Tr= T x F1 x F2 x F3 x F4
22F1 C4 / C10 0.875
23F2 C13 / C4 0.533
24F3 C16 / C14 0.600
25F4 1/ C11 5
26Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C251.400crore
27Eligible ITC (Te)=Tc + Tr C26 + C20 1.525crore
28ITC to be reversed/ taken on transition, Tx= T- Te C19 - C27 -0.525crore
29Tx after application of cap on % invoicing vis-a-vis Pc
30% completion 20%
31% invoicing 60%
32% invoicing after application of cap(Pc + 25%) C11+25% 45%
33Total value of supply of residential apartments having t.o.s. prior to transitionC14*C32 10.80crore
34F3 after application of cap C33/C14 0.45
35Tr= T x F1 x F2 x F3 x F4 (after application of cap) C19 * C22 * C23 * C34 * C251.05 crore
36Eligible ITC (Te)=Tc + Tr (after application of cap) C20 + C35 1.18 crore
37ITC to be reversed / taken on transition, Tx= T- Te (after application of cap)C19 - C36 -0.18crore
38Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation
39% invoicing after application of cap(Pc + 25%) 45%
40Total value of supply of residential apartments having t.o.s. prior to transitionC33 10.80 crore
41Consideration received 8.00 crore
42
Total value of supply of residential apartments having t.o.s. prior to transition
after application of cap vis-a-vis consideration received
8 cr + 25% of 8 Cr 10.00 crore
43F3 after application of both the caps C42 / C14 0.42
44Tr= T x F1 x F2 x F3 x F4 (after application of both the caps)C19 * C22 * C23 * C43 * C250.97
45Eligible ITC (Te)=Tc + Tr (after application of both the caps) C20 + C44 1.10
46
ITC to be reversed / taken on transition, Tx= T- Te (after application of both the
caps) C19 - C45 -0.10
crore
Sl. No
Details of a REP (Res + Com)
* Note:-
1. The value of T at C19 has been estimated for illustration based on weighted average tax on inputs.
2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or
commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T.
19
Annexure II
Residential Real estate project (RREP)
Input tax credit attributable to construction of residential and commercial portion in
a Residential Real estate project (RREP), which has time of supply on or after 1
st
April,
2019, shall be calculated project wise for all projects which commence on or after 1
st
April,
2019 or ongoing projects in respect of which the promoter has not exercised option to pay
central tax on construction of apartments at the rates as specified for item (ie) or (if) against
serial number 3, as the case may be, in the prescribed manner, before the due date for
furnishing of the return for the month of September following the end of financial year
2018-19, in the following manner:
1. Where % completion as on 31
st
March, 2019 is not zero or where there is
inventory in stock
(a) Input tax credit on inputs and input services attributable to construction of residential
and commercial portion in an RREP, which has time of supply on or after 1
st
April, 2019,
may be denoted as Tx. Tx shall be calculated as under:
Tx=T-Te
Where,
(i) T is the total ITC availed (utilized or not) on inputs and input services used in
construction of the RREP from 1
st
July, 2017 to 31
st
March, 2019 including
transitional credit taken on 1
st
July, 2017;
(ii) Te is the eligible ITC attributable to construction of commercial portion and
construction of residential portion, in the RREP which has time of supply on or
before 31
st
March, 2019;
(b) Te shall be calculated as under:
Te= T* F1 * F2 * F3* F4
Where, -
F1= Carpet area of residential and commercial apartments in the RREP
Total carpet areaofapartments in the RREP
(In case of a Residential Real Estate Project, value of “F1” shall be 1.)
Total carpet area of residential and commercial apartment booked on
or before 31
st
March, 2019
F2=
Total carpet area of the residential and commercial apartment in the
RREP
20
Such value of supply of construction of residential and commercial
apartments booked on or before 31
st
March, 2019 which has time of
supply on or before 31
st
March, 2019
F3=
Total value of supply of construction of residential and commercial
apartments booked on or before 31
st
March, 2019
(F3 is to account for percentage invoicing of booked residential apartments)
F4= 1
% Completion of construction as on 31
st
March, 2019
Illustration: where one- fifth (twenty percent) of the construction has been completed, F4
shall be 100 ÷ 20 = 5.
Explanation: “% Completion of construction as on 31
st
March, 2019” shall be the same as
declared to the Real Estate Regulatory Authority in terms of section 4 and section 11 of Real
Estate (Regulation and Development) Act, 2016 and where the same is not required to be
declared to the Real Estate Regulatory Authority, it shall be got determined and certified by
an architect registered with the Council of Architecture constituted under the Architects Act,
1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers
(India).
(c) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of
central tax, State tax, Union territory tax and integrated tax.
(d) Where, Tx is positive, i.e. Te < T, the registered person shall pay, by debit in the
electronic credit ledger or electronic cash ledger, an amount equal to the difference between
T and Te. Such amount shall form part of the output tax liability of the registered person and
the amount shall be furnished in FORM GST ITC- 03.
Explanation: The registered person may file an application in FORM GST DRC- 20,
seeking extension of time for the payment of taxes or any amount due or for allowing
payment of such taxes or amount in installments in accordance with the provisions of
section 80. The commissioner may issue an order in FORM GST DRC- 21 allowing the
taxable person further time to make payment and/or to pay the amount in such monthly
installments, not exceeding twenty-four, as he may deem fit.
(e) Where, Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC
on goods and services received on or after 1
st
April, 2019 for construction of the RREP, for
which he shall not otherwise be eligible, to the extent of difference between Te and T.
(f) Where percentage completion is zero but ITC has been availed on goods and
services received for the project on or prior to 31
st
March, 2019, input tax credit attributable
to construction of residential and commercial portion which has time of supply on or after
21
1
st
April, 2019, shall be calculated and the amount equal to Tx shall be paid or taken credit
of, as the case may be, as prescribed above, with the modification that percentage
completion for calculation of F4 shall be taken as the percentage completion which, as
certified by an architect registered with the Council of Architecture constituted under the
Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of
Engineers (India), can be achieved with the input services received and inputs in stock as on
31
st
March, 2019.
2. Where % completion as on 31st March, 2019 is zero but invoicing has been
done having time of supply before 31st March, 2019, and no input services or inputs
have been received as on 31st March, 2019, “Te” shall be calculated as follows: -
(a) Input tax credit on inputs and input services attributable to construction of residential
and commercial portion in an RREP, which has time of supply on or before 31
st
March,
2019 may be denoted as Te which shall be calculated as under,
Te = Tn* F1 * F2 * F3
Where, -
Tn= Tax paid on such inputs and input services on which ITC is available under the CGST
Act, received in 2019-20 for construction of residential and commercial apartments in the
RREP.
F1, F2 and F3 shall be the same as in para 1 above
(b) The registered person shall be eligible to take ITC on goods and services received on
or after 1
st
April, 2019 for construction of residential or commercial portion in the RREP,
for which he shall not otherwise be eligible, to the extent of the amount of Te.
(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax,
State tax, Union territory tax and integrated tax.
3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be
determined in the following situations as under:
(i) where percentage invoicing is more than the percentage completion and the
difference between percentage invoicing (per cent. points) and the percentage
completion (per cent. points) of construction is more than 25 per cent. points; the
value of percentage invoicing shall be deemed to be percentage completion plus 25
percent. points;
(ii) where the value of invoices issued on or prior to 31
st
March, 2019 exceeds the
consideration actually received on or prior to 31
st
March, 2019 by more than 25 per
cent. of consideration actually received; the value of such invoices for the purpose
of determination of percentage invoicing shall be deemed to be actual consideration
received plus 25 per cent. of the actual consideration received; and
22
(iii) where, the value of procurement of inputs and input services prior to 1
st
April,
2019 exceeds the value of actual consumption of the inputs and input services used
in the percentage of construction completed as on 31
st
March, 2019 by more than 25
per cent. of value of actual consumption of inputs and input services, the
jurisdictional commissioner or any other officer authorized in this regard may fix
the Te based on actual per unit consumption of inputs and input services based on
the documents duly certified by a chartered accountant or cost accountant submitted
by the promoter in this regard, applying the accepted principles of accounting.
23
Illustration 1:
A B C D
1No. of apartments in the project 100units
2No. of residential apartments in the project 100units
3Carpet area of the residential apartment 70sqm
4Total carpet area of the residential apartments C2 * C3 7000sqm
5value of each residential apartment 0.60crore
6
Percentage completion as on 31.03.2019 [as declared to RERA or determined by
chertered engineer] 20%
7No of apartments booked before transition 80units
8Total carpet area of the residential apartment booked before transition C3 * C7 5600sqm
9Value of booked residential apartments C5 * C7 48crore
10Percentage invoicing of booked residential apartments on or before 31.03.2019 20%
11Total value of supply of residential apartments having t.o.s. prior to transitionC9 * C10 9.6crore
12ITC to be reversed on transition, Tx= T- Te
13Eligible ITC (Te)=T x F1 x F2 x F3 x F4)
14T (*see notes below) 1crore
15F1 1
16F2 C8 / C4 0.8
17F3 C11 / C9 0.2
18F4 1/ C6 5
19Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C180.8crore
20ITC to be reversed on transition, Tx= T- Te C14 - C19 0.2crore
Details of a residential real estate project (RREP)
Sl No
*Note:-
1. The value of T at C14 has been estimated for illustration based on weighted average tax on inputs.
2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017
or commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T.
24
Illustration 2:
[F. No.354/32/2019-TRU]
(Pramod Kumar)
A B C D
1No. of apartments in the project 100units
2No. of residential apartments in the project 100units
3Carpet area of the residential apartment 70 sqm
4Total carpet area of the residential apartments C2 * C3 7000sqm
5value of each residential apartment 0.60crore
6
Percentage completion as on 31.03.2019 [as declared to RERA or determined by
chertered engineer]
20%
7No of apartments booked before transition 80 units
8Total carpet area of the residential apartment booked before transition C3 * C7 5600sqm
9Value of booked residential apartments C5 * C7 48 crore
10Percentage invoicing of booked residential apartments on or before 31.03.2019 60%
11Total value of supply of residential apartments having t.o.s. prior to transitionC9 * C10 28.8crore
12ITC to be reversed on transition, Tx= T- Te
13Eligible ITC (Te)=T x F1 x F2 x F3 x F4)
14T (*see notes below) 1 crore
15F1 1
16F2 C8 / C4 0.8
17F3 C11 / C9 0.6
18F4 1/ C6 5
19Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C182.4crore
20ITC to be reversed on transition, Tx= T- Te C14 - C19 -1.4crore
21Tx after application of cap on % invoicing vis-a-vis Pc
22% completion 20%
23% invoicing 60%
24% invoicing after application of cap(Pc + 25%) C6 + 25 % 45%
25Total value of supply of residential apartments having t.o.s. prior to transitionC9 * C24 21.60crore
26F3 after application of cap C25/C9 0.45
27Te= T x F1 x F2 x F3 x F4 (after application of cap) C14 * C15 * C16 * C26 * C181.80crore
28ITC to be reversed / taken on transition, Tx= T- Te (after application of cap)C14 - C27 -0.80crore
29Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation
30% invoicing after application of cap(Pc + 25%) 45%
31Total value of supply of residential apartments having t.o.s. prior to transitionC25 21.60crore
32consideration received 16.00crore
33
Total value of supply of residential apartments having t.o.s. prior to transition after
application of cap vis-a-vis consideration received
16 cr + 25% of 16 Cr 20.00crore
34F3 after application of both the caps C33/C9 0.42
35Te= T x F1 x F2 x F3 x F4 (after application of both the caps) C14 * C15 * C34 * C26 * C181.67
36
ITC to be reversed / taken on transition, Tx= T- Te (after application of both the
caps)
C14 - C35 -0.67crore
Sl No
Details of a residential real estate project (RREP)
*Note:-
1. The value of T at C14 has been estimated for illustration based on weighted average tax on inputs.
2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or
commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T.
25
Annexure III
Illustration 1:
A promoter has procured following goods and services [other than capital goods and services by way
of grant of development rights, long term lease of land or FSI] for construction of a residential real
estate project during a financial year.
Sl.
No.
Name of input goods and
services
Percentage of input
goods and services
received during the
financial year
Whether inputs received
from registered supplier?
(Y/ N)
1 Sand 10 Y
2 Cement 15 N
3 Steel 20 Y
4 Bricks 15 Y
5 Flooring tiles 10 Y
6 Paints 5 Y
7 Architect/ designing/ CAD
drawing etc.
10 Y
8 Aluminium windows, Ply,
commercial wood
15 Y
In this example, the promoter has procured 80 per cent. of goods and services [other than services by
way of grant of development rights, long term lease of land (against upfront payment in the form of
premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed
diesel, motor spirit, natural gas], from a GST registered person. However, he has procured cement
from an unregistered supplier. Hence at the end of financial year, the promoter has to pay GST on
cement at the applicable rates on reverse charge basis.
Illustration 2:
A promoter has procured following goods and services [other than services by way of grant of
development rights, long term lease of land (against upfront payment in the form of premium, salami,
development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor
spirit, natural gas], for construction of a residential real estate project during a financial year.
Sl.
No.
Name of input goods and
services
Percentage of input
goods and services
received during the
financial year
Whether inputs received
from registered supplier?
(Y/ N)
1 Sand 10 Y
2 Cement 15 Y
3 Steel 20 Y
4 Bricks 15 Y
5 Flooring tiles 10 Y
6 Paints 5 N
26
7 Architect/ designing/ CAD
drawing etc.
10 Y
8 Aluminium windows, Ply,
commercial wood
15 N
In this example, the promoter has procured 80 per cent. of goods and services including cement from
a GST registered person. However, he has procured paints, aluminum windows, ply and commercial
wood etc. from an unregistered supplier. Hence at the end of financial year, the promoterisnotrequired
to pay GST on inputs on reverse charge basis.
Illustration 3:
A promoter has procured following goods and services [other than services by way of grant of
development rights, long term lease of land (against upfront payment in the form of premium, salami,
development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor
spirit, natural gas], for construction of a residential real estate project during a financial year.
Sl.
No.
Name of input goods and
services
Percentage of input
goods and services
received during the
financial year
Whether inputs procured
from registered supplier?
(Y/ N)
1 Sand 10 N
2 Cement 15 N
3 Steel 15 Y
4 Bricks 10 Y
5 Flooring tiles 10 Y
6 Paints 5 Y
7 Architect/ designing/ CAD
drawing etc.
10 Y
8 Aluminium windows 15 N
9 Ply, commercial wood 10 N
In this example, the promoter has procured 50 per cent. of goods and services from a GST registered
person. However, he has procured sand, cement and aluminum windows, ply and commercial wood
etc. from an unregistered supplier. Thus, value of goods and services procured from registered
suppliers during a financial year falls short of threshold limit of 80 per cent. To fulfill his tax liability
on the shortfall of 30 per cent. from mandatory purchase, the promoter has to pay GST on cement at
the applicable rate on reverse charge basis. After payment of GST on cement, on the remaining
shortfall of 15 per cent., the promoter shall pay tax @ 18 per cent. under RCM.
[F. No.354/32/2019-TRU]
(Pramod Kumar)
27
Annexure IV
FORM
(Form for exercising one time option to pay tax on construction of apartments in a project by
the promoters at the rate as specified for item (ie) or (if), against serial number 3 in the Table in
this notification, as the case may be, by the 10
th
of May, 2019)
Reference No. ___________________ Date ____________
To ____________________
____________________
____________________
(To be addressed to the jurisdictional Commissioner)
1. GSTIN:
2. RERA registration Number of the Project:
3. Name of the project, if any:
4. The location details of the project, with clear demarcation of land dedicated for the
project along with its boundaries including the longitude and latitude of the end points
of the project:
5. The number, type and the carpet area of apartments for booking or sale in the project:
6. Date of receipt of commencement certificate:
Declaration
1. I hereby exercise the option to pay tax on construction of apartments in the above
mentioned project as under :
I shall pay tax on
construction of the
apartments:
(put (√) in appropriate
box)
At the rate as specified
for item (ie) or (if),
against serial number 3
in the Table in this
notification, as the case
may be
At the rate as specified
for item (i) or (ia) or (ib)
or (ic) or (id), against
serial number 3 in the
Table in this notification,
as the case may be
2. I understand that this is a onetime option, which once exercised, shall not be allowed to
be changed.
3. I also understand that invoices for supply of the service can be issued during the period
from 1
st
April 2019 to 10
th
May 2019 before exercising the option, but such invoices
shall be in accordance with the option being exercised herein.
Signature ___________________
Name _______________________
Designation _________________
Place __________________
Date __________________
