ware self CNXS2RS/ COST 24/10/79 (TO BE PUBLISHED IN PARTIV OF THE DELHI AZETTE EXTRAORDINARY) GOVERNMENTOF NATIONAL CAPITAL TERRITORY OF DELHI FINANCE (REVENUE-1) DEPARTMENT DELHI SACHIVALAYA,LP. ESTATE: NEW DELHI-110 002 No. F.3 (64)/Fin (Rey-1)/2019-20/ Ds-vuYP? Dated: Af10/1§$ Notification No 03/2019- State Tax (Rate) No. F.3 (64)/Fin (Rev-I)/2019-20/- In exercise of the powers conferred by sub-sections
(1), G)and (4) of section 9, sub-section (1) ofsection 11,sub-section (5) of section 15, subsection (1) of section 16 and section 148 of the Delhi Goods and Services Tax Act, 2017 (03 of 2017), the Lt. Governor of National Capital Territory of Delhi, on the recommendationsofthe Council, and on beingsatisfied thatit is necessary in the public interest so to do, hereby makes the folowing further amendments in the notification ofthe Governmentof National Capital Territory of Delhi, in the Departmentof Finance ( Revenue-I), No.11/2017- State Tax (Rate), dated the 30June, 2017, published in the Gazette of Delhi, Extraordinary, Part IV, vide number No,F.3(15 )/Fin(Rev-I)/2017-18/DS-VI/ 381, dated the 30" June, 2017, namely:- in the said notification, -
(i) in the opening paragraph,
(a) brackets and figures “sub-section (3) and inserted;
(b) — the word “and”afier the words and figures substituted by the symbol“,”;
(c) 148”shall be inserted;
(ii) in the Table,- afier the word, brackets and figures “conferred by sub-section (1),”, the word, sub-section (4)” shall respectively be “sub-section (5) of section 15”shall be after the word, brackets and figures “section (16)”, the words and figure “and section ' (a) against serial number3, foritem (i), and the entries relating thereto in column(3), (4) and (5), the following itemsandentries shall be substituted, namely,- Table [— _ @ @ | 6) ray “Construction of affordable residential Provided that the state tax at the rate apartments by a promoterin a Residential Real specified in column (4) shall be paid in Estate Project (herein after referred to as cash, that is, by debiting the electronic RREP) which commenceson orafter 1" April, cash ledger only;
SN 2012 or in an ongoing RREP it FESPECL of Provided also that credit of input taxwhich the promoter has not exercised option to |
0.75 charged on goods andservices used in | pay State tax on construction of apartments at the rates as specified foritem (ie) or (if) below, as the case may be, in the mannerprescribed therein,intended for sale to a buyer, wholly or ty.esey where the entire consideration supplying the service has not been taken except to the extent as prescribed in Annexure I in the case of REP other than Ces RREP and in Annexure II in the case of Woee ulin.
on O34 RREP;
“jen eds pales Mobley Gotz Welbaile « guiewct® — p10" | hasbeen receivedaller issuance of completion | certificate, where required, by the competent authority or after its first occupation, whicheveris earlier.
| (Provisions of paragraph 2 of this notification shail apply for valuation ofthis service)
(ia) Construction of residential apartments other than affordable residential apartments by la promoter in an RREP which commences on orafter 1" April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to state 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, | whicheveris earlier.
(Provisions ofparagraph 2 ofthis notification shall apply for valuation ofthis service) pay
3.75
(ib) Construction of commercial apartments | (shops, offices, godowns etc.) by a promoterin an RREP which commences on or afier 1% April, 2019 or in an ongoing RREPin respect | of which the promoter has not exercised option to pay state tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the cuse may be,in the manner prescribed therein,intended forsale 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, whicheveris earlier, (Provisions of paragraph 2 of this notification shall apply for valuation ofthis service)
(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 after 1" April, 2019 or in an ongoing REP|
0.75
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 whichis on or after 1‘ April, 2019, which shall be calculated in the manneras prescribed in the Annexure Lin the case of REP other than RREP and in AnnexureII in the case of RREP;
Provided also that where a registered person transfers (including additional FSI) to a promoter (developerconsideration, wholly or partly, in the form ofconstruction of apartments,- who FSI (landownerdevelopment promoter) right or promoter) against
(i) the developer- promotershall pay tax on supply of construction of apartments to the —landownerpromoter, 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 — landownerpromoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same whichis not less than the amount oftax charged from him on construction of such apartments by the — developerpromoter.
Explanation. -
(i) “developer- promoter” is a promoter whoconstructs or converts a building into apartments or develops a plot for sale,
(ii) “landowner- promoter”is a promoter other than RREP in respect of which the promoter has not exercised option to pay state | tax on construction of apartmentsat 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, whicheveris earlier.
(Provisions of paragraph 2 of this notification shall apply for valuation ofthis service)
(id) Construction of residential apartments other than affordable residential apartments by a promoter in a REP other than a RREP which commencesonorafter 1“ April, 2019 or in an ongoing REPother than RREPin respect ofwhich the promoter has not exercised option to pay state 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, intendedforsale to a buyer, wholly or partly, except where the entire consideration has been received afier issuance of completion certificate, where required, by the competent authority or after its first occupation, whicheveris earlier, (Provisions. of paragraph ofthis notification shall apply for valuation ofthis service)
3.75 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 paymentin 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, whicheveris earlier)falls short of the said threshold of 80 per cent., State tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of Nine percent on reverse charge basis andall the provisions of the Delhi Goods and Services Tax Act, 2017 (03 of 2017) shall apply to him as if heis 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 rates on reverse charge basis and all the provisions of the Delhi Goods and| Services Tax Act, 2017 (03 of 2017),shall apply to him as if he is the personliable for paying the tax in relation to such supply of cement;
(Please refer to the illustrations in annexureIIT)
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 taxliability in the month notlater than the month of June following the end ofthe 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), subitem (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item
(d) and sub-item (da)ofitem (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 state tax on | construction of apartments at the rates as specified for this item.
| (Provisions of paragraph 2 ofthis notification
Provided that in case of ongoing project, the registered person shall exercise one timeoption in the Form at Annexure IV to pay state tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case maybe,by the 10" of May, 2019;
Provided also that where the option is not exercised in Form at annexure IV by the 10" of May, 2019, option to pay tax at the 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;
f {Sal apply for valuation ofthis service) ( if) Construction of a complex, building, civil structure ora part thereof, including,-
(i) commercia! 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 state tax on construction of apartments at the rates as specified for this item in the mannerprescribed 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, whicheveris earlier.
Explanation. -For the removal ofdoubt, it is hereby clarified that, supply by wayof services specified at items (i), (ia), (ib), (ic), (id) and
(ie) in column (3) shall attract state 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 underthis entry.
(Provisions of paragraph 2 ofthis notification shall apply for valuation ofthis service
Provided also that invoices for supply of the service can be issued during the period from I“ April 2019 to 10 May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.;
‘(b) against serial number3,- 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;
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;
. 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 Delhi 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 I* April, 2019, or in an ongoing project in respect of which the promoter has not exercised option to pay state tax on construction ofapartmentsat the rates as specified for item (ie) or (if, as the case may be, in the manner prescribed therein, 6
Provided that carpet area of the affordable residential apartments in the entry in column
(3) relating to this item, is not less than 50 per cent. of the total carpet area ofall 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 subclause (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 of the affordable residential apartments booked or sold before or after completion, for which gross amount actually charged wasforty 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, thatis, 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.
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 State tax prescribed against them in column (4) subject to conditions specified against themin column (5) and shall not be levied at the rate as specified underthis entry.”;
(c) against serial number16,in item (ii) in column (3), for the word, brackets andletters “sub-item (b), sub-item(c), sub-item (d), sub-item (da) and sub-item (db)ofitem (iv);
7 sub-item (b), sub-item (c), sub-item(d) and sub-item (da)ofitem (v); and sub-item (c) ofitem (vi)”, the word, brackets figures andletters “(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 numberand entries shall be inserted, namely: - qd) (2) (3) (4) (G5) “39. Chapter 99 Supply of services other than services by way of grant of developmentrights, 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 Delhi Goods and Services Tax Act, 2017 (03 of 2017), as prescribed in notification No. 07 / 2019- State Tax (Rate), dated the 22October, 2019, published in Gazette of Delhi vide No.F.3(74)/Fin(Rey-I)/2019- 20/DS-V1/498 dated the 22" October
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.
(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;
(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 ofconstruction 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 8 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 oftransfer 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 onor before the 31‘ March, 2019 shall mean an apartment which meets all the following three conditions, namely- (a) part of supply of construction which has time of supply on or before the 31° March, 2019 and (b) at least one instalment has been credited to the bank accountofthe registered person on or before the 31" March, 2019 and (c) an allotmentletter or sale agreementor any other similar document evidencing booking of the apartmenthas been issued on or before the 31°" March, 2019;
(xiv) the term “apartment” shall have the same meaning as assigned to it in clause (e) of section 2 ofthe 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 apartmentin a project which commenceson orafter 1" April, 2019, or in an ongoing project in respect of which the promoter has not exercised option in the prescribed formto pay state 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 meterin cities or towns other than metropolitan cities and for which the gross amount charged is not more than forty five lakhs rupees.
For the purposeofthis 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 Governmentin this regard;
(ii) Gross amountshall be the sumtotalof: - 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 transferofland or undivided share of land, as the case maybe including by wayoflease or sub lease; and C. Any other amount charged by the promoter from the buyer of the apartment includingpreferential locationcharges, development charges, parking charges, commonfacility chargesetc.;
(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 9 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 state tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number3, as the case may be.”
(xvii) the term “promoter” shall have the same meaningas assignedtoit 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 meaningasassignedto itin 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. ofthe total carpet area ofall the apartments in the REP.
(xx) the term “ongoing project” shall mean a project which meets all the following conditions, namely-
(a) commencementcertificate in respect of the project, where required to be issued by the competent authority, has been issued’ on or before 31° March, 2019, andit is certified by any of the following that construction of the project has started on or before 31‘ March, 2019:-
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972); or
(ii) a chartered engineerregistered with the Institution of Engineers (India); or
(iii) a licensed surveyorof the respective local bodyof the city or town orvillage or developmentor planning authority.
(b) where commencementcertificate in respect of the project, is not required to be issued by the competentauthority,it is certified by any of the authorities specified in subclause (a) above that construction of the’ project has started on or before the 31“ March, 2019;
(c) completion certificate has not been issued or first occupation of the projecthas not taken place on or before the 31 March, 2019;
(d) apartments being constructed underthe project have been, partly or wholly, booked onor before the 31** March, 2019.
Explanation.-For the purpose of sub- clause (a) and (b) above , construction of a project shall be considered to havestarted on or before the 31‘ March, 2019,if the earthwork for site preparation for the project has been completed and excavation for foundation hasstarted on or before the 31°‘ March, 2019.
(xxi) "commencement certificate" means the commencementcertificate 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;
10
(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 projectfor its benefit, as per sanctioned plans;
(xxv) the term "competent authority” as mentioned in definition of “commencement certificate” and “residential apartment” , meansthelocal authority or any authority created or established under any law for the time beingiti force by the Central Governmentor State Governmentor Union Territory Government, which exercises authority over land underits jurisdiction, and has powers to give permission for development of such immovable property;
(xxvi) The term “carpet area” shall have the same meaning assignedto it in clause (k) of section 2 ofthe 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 Governmentor State Government;
(xxviii) “project which commenceson orafter 1** April, 2019” shall mean a project otherpro] Pp than an ongoingproject;
(xxix) “Residential apartment” shall mean an apartment intended for residential use as declared to the Real Estate Regulatory Authority or to competentauthority;
(xxx) “Commercial apartment”shall mean an apartment other than a residential apartment;
(xxxi) “floor space index (FSI)”shall mean the ratio of a building’s total floor area (gross floor area) to the size ofthe piece of land upon whichit is built;
2. This notification shall comeinto force with effect from the 1* day of April, 2019.
Byorder andin the nameofthe Lt. Governorofthe National Capital Territory of Delhi, Dy. Secretary VI (Finance) at No.F3(64)/Fin(Rev-1)/2019-20/DS-VU FFF Dated: 4%?o/.fof,7P Copy forwarded for information to:- 4 The Addl. Chief Secretary (Finance); Government of NCT of Delhi, Delhi Sachivalaya, Delhi
2. The Principal Secretary (GAD), Government of NCTof Delhi with the request to publish the notification in Delhi Gazette Part-lV (Extraordinary) in today’s date. :
The Principal Secretary to the Hon'ble Lieutenant Governor, Delhi The Additiona! Secretary to the Hon'ble Chief Minister, Government of NCT of Delhi, Delhi Sachivalaya, |.P Estate, New Delhi
5. The Secretary to Finance Minister, Govt. of NCT of Delhi, Delhi Sachivalaya, . LP. Estate, New Delhi 6 The P.A. to the Leader of Opposition, 29, Delhi Legislative Assembly, Old Secretariat, Delhi.
é The Commissioner, State Tax, Delhi, Vyapar Bhawan, |.P. Estate, New Delhi. :
8. The Additional Secretary (Law), Government of NCT of Delhi, Delhi Sachivalaya, |.P. Estate, New Delhi 9 OSDto Chief Secretary, Government of NCT of Delhi, Delhi Sachivalaya, |.P. Estate, New Delhi.
10. Guard File.
11. Website.
(A.K. Singh) Dy. Secretary VI (Finance) f o Note: -The principal notification No. 11/2017 - State Tax (Rate), dated the 30" June, 2017 was published in the Gazette of Delhi, Extraordinary- IV, published vide No F,3(15)/Fin.(Rey-1)/2017-18/DS-V1/381, dated the 30" June, 2017 and waslast amended by notification No. 27/2018 - State Tax (Rate), dated 12" September,2019 vide no F.3(54)/Fin.(Rev-I)/2019-20/DS-V1/421 dated the 12" September, 2019.
12 Annexure 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° April, 2019, shall be calculated project wise for all projects which commence on or after 1“ April, 2019 or ongoing projects in respect of which the promoter has not exercised option to pay State tax on construction of apartmentsat the rates as specified for item (ie) or (if) against serial number 3, as the case maybe,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° March, 2019 is not zero or where there is inventory in stock
(a)
(b) Input tax credit on inputs and input services attributable to construction ofresidential portion in a REP, which has time of supply on or after 1 April, 2019, may be denoted as Tx. Tx shall be calculated as under:
Tx=T-Te Where,
(i) Tis the total ITC availed (utilized or not) on inputs and input services used in construction of the REP from 1* July, 2017 to 31% March, 2019 including transitionalcredit taken on 1"July, 2017;
(ii) Te is the eligible ITC attributable to (a) construction of commercial portion and
(b) construction ofresidential portion, in the REP which has time of supply on or before 31° March, 2019;
Te shall be calculated as under:
Te=Te+Tr Where,- Te is the ITC attributable to construction of commercial portion in the REP, calculated as under:
Te =I * (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) and Tris the ITC attributable to construction ofresidential portion in the REP which has time of supply onor before 31March, 2019 and whichshall be calculated as under, Tre T* By * Fo *F3* Fy Where,- Fi= Carpetarea ofresidential apartments in REP 43 Total carpet area of commercialand residential apartmentsin the REP Total carpet area ofresidential apartment booked on or before 31" March, 2019 y= Total carpet area ofthe residential apartment in REP Such Value of supply of construction of residential apartments booked on or before 31" March, 2019 which hastime of supply on or before 31“ March, 2019 Fy= Total value of supply of construction of residential apartments booked on or before 31March, 2019 (F3 is to account for percentage invoicing ofbookedresidential apartments) R= 1 % Completion of construction as on 31“ March, 2019
Illustration: where one- fifth (twenty percent) of the construction has been completed, F, shall be 100+ 20=5.
Explanation: “% Completion of construction as on 31*' March, 2019”shall be the same as declared to the Real Estate Regulatory Authority in termsofsection 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 anarchitect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineerregistered with the Institution of Engineers (India). *
(c) A registered person shall have the option to calculate ‘Te’ in the mannerprescribed below instead of the mannerprescribed in (b) above,- Te shall be calculated as under:
Te=Te+T1+Tr Where,- Te is the ITC attributable to construction of commercial portion in the REP, calculated as under: :
Te =T3 * (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP);
Wherein 14 13=T-(T14T2) Tl =ITC attributable exclusively to construction of commercial portion in the REP T2=ITCattributable exclusively to constuction ofresidential portion in the REP and Tr is the ITC attributable to construction ofresidential portion in the REP which has timeof supply on or before 31.03.2019 and whichshall be calculated as under, Tr=(T3 + T2)* Fy * Fy * Fy* Fy or Tr =(T- T1)* Fy * Fo * F3* Fy
(d) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Unionterritory tax andintegrated tax.
(e) Where, Tx is positive, i.e. Te<T, the registered person shall pay, by debit in the electronic creait ledger or electronic cash ledger, an amountequalto the difference between T and Te. Such amountshall form part of the output tax liability of the registered person and the amountshall be furnished in FORM GSTITC- 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 orfor 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 deemfit.
() Where Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC on goods andservices received on or after 1April, 2019 for construction ofresidential portion in the REP, for which heshall not otherwise beeligible, to the extent ofdifference between Te and T.
(g) The registered person may calculate Tc and utilize credit to the extent of Te for paymentof 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 31March, 2019,input tax creditattributable to construction ofresidential portion which hastime ofsupply on orafter 1" April, 2019, shall be calculated and the amount equal to Tx shall be paid or takencredit 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"'March,2019. :
15 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 idx credit on inputs and inputservices attributable to construction ofresidential portion in a REP, whichhastimeofsupply on or before 31“ March, 2019 may be denoted as Te whichshall be calculated as under, Te=Te+Tr Where,- Te is the ITC attributable to construction of commercial portion in the REP, calculated as under:
Te =Tn* (carpet area of commercial apartments in the REP/total carpet area of commercial and residentia! apartments in the REP) and Tr is the ITC attributable to construction ofresidential portion in the REP which hastime of supply on or before 31 March, 2019 and whichshall be calculated as under, Tr = Tn* F, * F* F3 Where, - ‘Tn= Tax paid on such inputs and input services on which ITCis available under the DGST Act, received in 2019-20 for construction of REP F1, F2 and F3 shall be the same asin para 1 above
(b) The registered personshall be eligible to take ITC on goodsandservices received on orafter 1* April, 2019 for constructionofresidential portion in the REP, for which heshall not otherwise be eligible, to the extent of the amountofTe.
(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Unionterritory 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) ofconstruction is more than 25 percent. points; the value of percentage invoicing shall be deemedto be percentage completion plus 25 percent. points;
(ii) where the value of invoices issued on or prior to 31March, 2019 exceeds the consideration actually received on or prior to 31° March, 2019 by more than 25 percent. 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 percent. of the actual consideration received; and 16
(iii) where, the value of procurement of inputs and input services prior to 1“ April, 2019 exceedsthe value of actual consumption ofthe inputs and input services used in the percentage of construction completed as on 31° 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 accountantor cost accountant submitted by the promoterin this regard, applying the accepted principles of accounting.
Illustration 1:
Details of a REP (Res + Com) Sune a B c D |__| No. of apartmentsin the project 100 units 2__|No. of residential apartments inthe project 75 lunits |_3._ [Carpet area of the residential apartment 70 |sqm 4 {Total carpet area ofthe residential apartments C2*C3 5250 _|sqm.
5 |value of each residential apartment 0.60 |erore 6 [Total value ofthe residential apartments C2*cs 45.00__|crore 7_|No.ofcommercial apartments intheproject 25 junits 8 _|Carpet area ofthe commercialapartment 30 sqm |__9__ Total carpet area ofthe commercial apartments C7*C8 750 sqm |_ 10 |Totalcarpet area ofthe project (Resi + Com) C4+C9 6000 _|sqm | mn Percentage completion as on 31.03.2019 [as declared to RERAordetermined by chertered engineer) 20% 12_|No of residential apartments booked before transition 40 units 13 [Total carpet area of the residential apartments booked before transition. C12 * C3 2800 __|sqm 14 _|Value ofbooked residential apartments C5 *C12 24 crore
15. [Percentage invoicing ofbooked residential apartments on or before
31.03.2019 im 20% 16_[Fotalvalue of supply ofresidential apartments having Lo,s. priorto transition Cl4* CIS 48 [crore 7 ITC to be reversedon transition, Tx= T- Te 18 [Eligible IC (Te)= Te+ Tr 19 [1 (¥see notes below) 1 |erore To= T x (carpet area of commercial apartments in the REP/ total earpet area i 20 cttcorntibrlal avid renidential aparticnci nth REP) C19"ECD) C25 foots 21 [T=Tx Fl xF2xF3 x FA 2 ir C47CIO 0.875 23 |r _ CI3/C4 0.533 2 (3 C16/C14 0.200 25 [Fa WC 5 26_[T=TxFIxF2xF3xF4 C19 * C22 * C23 C34 *C25]_ 0.467 _[erore [27 [Eligible (TC (Te)=Te + Tr C26 + C20 0.592 _lerore 28_[ITC 10 be reversed on transition, Te=T- Te C19-C27 0.408 [crore * Note:- |. The value of T at C19 has been estimated forillustration based on weighted average tax on inputs.
2. Inactual practice, the registered person shall take ‘aggregate ofIC taken as declared in GSTR-3B oftax periods from 1.72017 or commencemnt ofproject whichis later and transitional credit taken under section 140 of CGSTAct’ as value of7 17
Illustration 2:
Details of a REP (Res + Com)SLNo x B c D __[No. ofapartmentsin the project 100 [units 2 _|No. of'residential apartmentsin the project 75 units 3 _|Carpet area of the residential apartment 70 isqm4 [Total carpet area of the residential apartments C2403 5250 [sqm5_|value ofeach residential apartment 0.60 [erore 6 | Total valueofthe residential apartments C2 *CS5 45.00 crore__1_|No. of commercial apartments in the project 25 units8 _|Carpet area oF the commercial apartment 30 |sqm9 [Total carpet area of the commercial apartments C7*CB 750 __|sqm 10__|Total carpet area of the project (Resi + Com) C4+C9 6000 sqm1 _ [Percentage completion (Pc) as on 31.03.2019 [as declared to RERA or Bore aes determined by chertered engineer] 20%=12_|No of residential apartments booked beforetransition 40 Tunis13. [Total carpet area of the residential apartments booked before transition Ci2*C3 2800 [sqm14__|Value of booked residential apartments cs *C12 24 [crore |> Percentage invoicing of booked residential apartments on or before 31.03.2019 16 [Total value of supply of residential apariments having t.0.s. prior to transition c14* Cis 144 Terore 17_|ITC to be reversed ontransition, Tx= T- Te 18 [Eligible ITC (Te)= Te + Tr |_19 IP (*see notes below) 1 croreTe='T'x (carpet area ofcommercial apartments in the REP/total carpet area of ‘2 | semeodct apaitn inthe REP) C19 *(C9/C10) Sz>.. |) {21 [ME TXPL xi2xF3 x F4 22 [FI c4/Ci0 0.87523 |r Ci3/C4 0.53324_|R3 C16 /C14 0.60025 [Fa VCH $26 [T= Tx FI xF2xF3x Fa C19 * C22 "C2324 *C25] 1.400 __|erore {27 [eligible ITC(Te=Te + Tr_ C26 + C20 1.525 [crore 28 _|ITCto be reversed/ takenontransition, Tx=T- Te C19-C27 0.525 crore 29 [Tx after application ofcap on % invoicing vis-a-vis Pe 30_|% completion 20%3) |% invoicing 5 60%32_|% invoicing after application ofeap(Pe +25%) Cli+25% 45%33 _|Total value ofsupply ofresidential apartments having to.s. prior to transition C14*C32 10.80 [erore34__|F3 after application ofcap c33/cl4 0.4535_|Tr=Tx Fl x F2 x F3 x Fd (after application ofcap) C19 * 22 * C23 *34*C25 |
1.05 [crore36_| Eligible ITC (ve)1e + Tr (after application ofcap) 20 +35 118 |erore37_[ITC to be reversed / taken on transition, Tx= T- Te (after application ofcap) C19 = C36 -0.18 — [erore 38 {Tx after application ofcap on % invoicing vis-a-vis Pe and paymentrealisation 39_|% invoicing after application ofcap(Pe + 25%) 45%|_40 [Total value of supply ofresidential apartments having Los. prior to transition C33 10.80 crore41 [Consideration rec 8.00 crore42_ | Totalvalue of supply of residential apartments having t.0.s. prior to transition Serb 25% ofCr 1000 aH |__"_|alter application of cap vis-a-vis consideration received 43 _|F3 afterapplication of both the caps C42/ C14 O4244 |Tr= Tx FI x F2 x F3 x Fé (after application ofboth the caps) C19 *C22 *C23 *C43*C25| 0.9745 _|Eligible ITC (Te)=Te + Tr (after application of both the caps) a (C20 +. C44 11046, |FIC to be reversed / taken on transition, Tx= T- Te (after application of both the ‘Shrcaps) C19- cas 0.10 * Note:
1. The value wr T at C19 has been estimated for illustration based on weighted averagetax on inputs,
2. In actual practice, the registered person shall take ‘apgregete of ITC taken as declared in GSTR-3B oftax periods from 1.7.2017 orcoirimencemnt of project whichis later and transitional credit taken under section 140 of CGST Act’ as value ofT 18 AnnexureII Residential Realestate project (RREP) Inputtax credit attributable to construction ofresidential and commercial portion in a Residential Real estate project (RREP), which has time of supply on or after 1° April, 2019, shall be calculated project wise for all projects which commenceon orafter 1° April, 2019 or ongoing projects in respect of which thé promoter has not exercised option to pay State 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 ofthe return for the month of September following the end offinancial year 2018-19, in the following manner:
1. Where % completion as on 31‘ March, 2019 is not zero or where there is inventory in stock
(a) Input tax credit on inputs and inputservicesattributable to construction ofresidential and commercial portion in an RREP, which has time of supply on orafter 1* April, 2019, maybe denoted as Tx. Tx shall be calculated as under:
Tx=T-Te Where, 0) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the RREP from I* July, 2017 to 31“March, 2019 including transitional credit taken on 1*' July, 2017;
(ii) Te is the eligible ITC attributable to construction of commercial portion and construction ofresidential portion, in the RREP which has time of supply on or before 31“'March, 2019;
(b) Te shall be calculated as under:
Te=T* F, * Fy * Fs* Fy Where,- Fi= Carpet area ofresidential and commercial apartments in the RREP Total carpet area of apartments 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*March, 2019 Be Total carpet area ofthe residential and commercial apartmentin the RREP 18 Such value of supply of construction of residential and commercial apartments booked on or before 31°March, 2019 which hastime of supply on or before 31March, 2019 F3= Total value of supply of construction of residential and commercial apartments booked onor before 31"'March, 2019 (F3 is to accountfor percentage invoicing of booked residential apartments) Fa= 1 % Completion ofconstruction as on 31“March, 2019
Illustration: where one- fifth (twenty percent) of the construction has been completed, Fy shall be 100 + 20 = 5.
Explanation: “% Completion of construction as on 31“March, 2019” shall be the same as declared to the Real Estate Regulatory Authority in termsof section 4 andsection 11 of Real Estate (Regulation and Development) Act, 2016 and where the sameis not required to be declared to the Real Estate Regulatory Authority,it shall be got determined andcertified by anarchitect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engincers (India).
(c) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Unionterritory tax and integrated tax.
(d) Where, Tx is positive, ic. 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 Tand Te. Such amountshall formpart of the outputtax liability ofthe registered person and the amountshall be furnished in FORM GSTITC- 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 amountin 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 beeligible to take ITC on goods and services received on orafier 1" April, 2019 for construction of the RREP, for whichhe shall not otherwise be eligible, to the extentofdifference 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 31March, 2019, inputtax credit attributable to construction ofresidential and commercial portion which has time of supplyon or after 1° 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 20 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 inputservices received andinputs in stock as on 31*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) Inputtax credit on inputs and input services attributable to construction ofresidential and commercial portion in an RREP, which has time of supply on or before 31‘March, 2019may be denoted as Te whichshall be calculated as under, Te = Tn* F, *F)* BF Where, - Tn= Tax paid on such inputs and inputservices on which ITC is available under the DGST Act, received in 2019-20 for construction of residential and commercial apartments in the RREP:
F1, F2 and F3 shall be the sameas in para 1 above
(b) The registered personshall be eligible to take ITC on goods and services received on or after 1April, 2019 for construction of residential or commercial portion in the RREP, for which he shall not otherwise beeligible, to the extent of the amount ofTe.
(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Unionterritory tax and integrated tax.
3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be determinedin the followingsituations 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 percent. 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‘March, 2019 exceeds the consideration actually received on or prior to 31March, 2019by more than 25 per cent. of consideration actually received; the value of such invoices for the purpose of determination of percentage invoicing shall be deemedto beactual consideration received plus 25per cent. of the actual consideration received; and
(iii) where, the value of procurement of inputs and input services prior to 1April, 2019 exceeds the value of actual consumption ofthe inputs and input services used in the percentage of construction completed as on 31March, 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 ai 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 promoterin this regard, applying the accepted principles of accounting.
Illustration 1:
Details of a residential real estate project (RREP) SINo * B C D |__|No.ofapartments in the project 100 [units 2__|No.of residential apartments in the project 100 _|units 3__|Carpetarea ofthe residential apartment 70 |sqm 4 __|Total carpet area ofthe residential apartments C2* C3 7000 _|sqm 5 __|value ofeach residential apartment 0.60 |crore 6 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20% 7__|No of apartiients booked beforetransition 80 _junits 8 __|Total carpet area ofthe residential apartment bookedbeforetransition C2.* G7 5600 |sqm 9 _|Value ofbooked residential apartments CS.2 CF 48 |crore 10_|Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 11__|Total value of supply ofresidential apartments having t.o.s. prior to transition €9* C10 9.6 _|crore 12_|ITC to be reversed ontransition, Tx= T- Te 13 _|Eligible ITC (Te)=T x Fl x F2 x F3 x F4) 14 _|T (*see notes below) | crore 15_|FI 1 16 |F2 C8/C4 0.8 17 _{|F3 Cil/C9 0.2 18 |F4 1/C6 5 19 _|Eligible ITC (Te)=T x Fl x F2 x F3 x F4) C14 *C15*C16*C17*C18 0.8 [crore 20__|ITC to be reversed on transition, Tx= T- Te C14-C19 0.2 |crore *Note:- |. The value of T at C14 has been estimatedforillustration based on weighted average tax on inputs.
2. In actual practice, the registered person shall take ‘aggregate of ITC taken as declared in GSTR-3Boftax periods from 1.7.2017 or commencemntofproject whichis later andtransitional credit taken under section 140 ofCGSTAct'as value of T.
22
Illustration 2:
Details ofa residential real estate project (RREP) SINo 7 B C D |__|No.ofapartmentsin the project 100 _[units 2__|No. of residential apartments in the project 100 units 3__|Carpetarea of the residential apartment 70 sqm 4 _|Total carpet area of the residential apartments C2 * C3 7000 {sqm 5__|value ofeachresidential apartment : 0.60 _|crore 6 Percentage completion as on 31.03.2019 [as declared to RERAordetermined by : 20% chertered engineer] 7__|No ofapartments booked before transition 80 units 8 __|Total carpet area ofthe residential apartment bookedbeforetransition C3.* C7 5600 [sqm 9 _|Value of bookedresidential apartments CSA CF 48 crore 10__|Percentage invoicing of bookedresidential apartments on or before 31.03.2019 60% 11__|Total value of supply ofresidential apartments havingt.o.s. prior to transition C9 * C10 28.8 _|crore 12__|ITC to be reversed ontransition, Tx= T- Te :
13 |Eligible ITC (Te)=T x F1 x F2 x F3 x F4) 14 _|T (*see notes below) 1 crore
15. 2jE1 1 16 |F2 C8/C4 0.8 17_|F3 CiL/C9 0.6 18 |F4 1/C6 5 19 _|Eligible ITC (Te)=T x Fl x F2 x F3 x F4) Ci4 * Cts * Ché * C17 * C18 2.4 |crore 20 _|ITC to be reversed ontransition, Tx= T- Te C14-Cl9 -14 crore 21__|Tx 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% 25 _|Total value ofsupply of residential apartments havingt.o.s.prior to transition C9 * C24 21.60 _|crore 26__|F3 after application of cap C25/C9 0.45 27_|Te= Tx FI x F2 x F3 x F4(after application of cap) Cr4* C15 * C16 * C26* C18 1.80 __|crore 28 {ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) C14 - C27 -0.80 |crore 29 _|Tx after application of cap on % invoicing vis-a-vis Pc and paymentrealisation 30__|% invoicing after application ofcap(Pe + 25%) 45% 31__|Total value ofsupply of residential apartments havingt.o.s. prior to transition C25 21.60 __|crore 32__|consideration received 16.00 _|crore 33 Total valuc of supply of residential apartments having t.o.s. priorto transition after 16 or + 25% of 16 Cr 20.00 _ application of cap vis-a-vis consideration received 34__|F3 after application of both the caps C33/C9 0.42 35__|Te= Tx Fl x F2 x F3 x F4 (after application of both the caps) C14 * C15 * C34 * C26 * C18 1.67 36 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the C14-C35 -0.67 lerore caps) *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 oftax periods from 1.7.2017 or commencemnt of project whichislater andtransitional credit taken under section 140 of CGST Act' as value ofT.
23
Illustration 1:
A promoter has procured following goods andservices [other than capital goods andservices by way of grant of developmentrights, long term lease of land or FSI] for construction ofa residential real estate project during financial year.
Annexure IIT Name of input goods SL and Percentage of input} Whether inputs received No. | services goods and services from registered supplier?
received during the (Y/N) financial year 1 Sand 10 Y 2 Cement 15 N
3. Steel 20 y 4 Bricks 15 ¥ 5 Flooringtiles 10 ¥.
6 Paints 5 ¥ 7 Architect/ designing/ CAD 10 ¥ drawingetc.
8 Aluminium windows, Ply, 15 3 commercial wood In this example, the promoter has procured 80per cent. of goods and services [other than services by wayof grant of deveiopmentrights, long term lease of land (against upfront paymentin the form of premium,salami, development chargesetc.) or FSI (including additional FSD),electricity, high speed diesel, motor spirit, natural gas], from a GST registered person. However, he has procured cement from an unregistered supplier. Hence atthe end offinancial year, the promoter has to pay GST on cementat 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 developmentrights, long term lease of land (against upfront paymentin the form of premium,salami, developmentcharges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], for construction ofa residentialreal estate project during a financialyear.
Sl Name of input goods and Percentage of input Whether inputs received No. | services goods and services from registered supplier?
received during the (Y/N) financial year | Sand 10 Y 2 Cement 15 Y 3 Steel 20 Y 4 Bricks 15 “Y¥ 5 Flooring tiles 10 Y 6 Paints 5 N 7 Architect/ designing/ CAD 10 Y 24 drawingete.
8 Aluminium windows,Ply, 15 N commercial wood In this example, the promoter has procured 80 per cent. of goods andservices including cement from a GSTregistered person. However, he has procured paints, aluminum windows,ply and commercial wood etc. from an unregistered supplier. Hence at the endoffinancial year, the promoter is not required to pay GST on inputs on reverse charge basis.
Illustration 3:
A promoter has procured following goods andservices [other than services by way of grant of developmentrights, long term lease of land (against upfront paymentin 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 residentialreal estate project during a financial year.
Sl | Name of input goods and/| Percentage. of input | Whether inputs procured No. | services goods and _ services | from registered supplier?
received during the (Y/N) / . financial year | Sand 10 N 2 | Cement 15 N 3 Steel 15 Y 4 Bricks 10 Y 5 Flooringtiles 10 x 6 Paints 5 Y 7 Architect/ designing/ CAD 10 Y drawingetc.
8 Aluminium windows 15 N 9 | Ply, commercial wood 10 N In this example, the promoter has procured 50 percent. 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 yearfalls short of threshold limit of 80 per cent. To fulfill his tax liability on the shortfall of 30 per cent. from mandatory purchase, the promoterhas to pay GST on cementat 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 @ “] 8(9+9)”per cent. under RCM.
25 Annexure FORM (Form for exercising one time option to pay tax on construction of apartments in a project by the promotersat the rate as specified for item (ie) or (if), against serial number3 in the Table in t this notification, as the case may be, by the 10" of May, 2019) Reference No. . Date To (To be addressed to the jurisdictional Commissioner) Ly GSTIN:
2. RERA registration Numberof the Project:
3: Nameofthe 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 andlatitude of the end points of the project: :
5: The number, type and the carpet area of apartments for bookingorsale in the project:
6. Date of receipt of commencementcertificate:
Declaration I}, I hereby exercise the option to pay tax on construction of apartments in the above mentioned project as under:
1 shall pay tax on] At the rate as specified At the rate as specified construction of the| for item (ie) or (if), for item (i) or (ia) or (ib) apartments: against serial number 3| or (ic) or (id), against (put (Vv) in appropriate |in the Table in this| serial number 3 in the box) notification, as the case | Table in this notification, may be as the case may be
2. | understand that this is a onetime option, which once exercised, shall not be allowed to be changed.
2 1 also understand that invoices for supply of the service can be issued during the period from 1“ April 2019 to 10" May 2019 before exercising the option, but such invoices shall be in accordance with the option being exercised herein.
Signature Name Designation Place na Date 26