PART III GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION BRANCH-II) NOTIFICATION The 6th June, 2019 No. S.O. 68/P.A.5/2017/S.11/Amd./2019.- In exercise of the powers conferred by sub-section (1) of section 11 of the Punjab Goods and Services Tax Act, 2017 (Punjab Act No.5 of 2017), and all other powers enabling him in this behalf, the Governor of Punjab, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, is pleased to make the following amendment in the Punjab Government, Department of Excise and Taxation, Notification No. S.O.37/P.A.5/2017/S.11/2017, dated the 30th June, 2017, published in the Punjab Government Gazette (Extraordinary), Part III, dated the 30th June, 2017, namely:- AMENDMENT In the said notification, -
(i) in the opening paragraph, for the words, brackets and figures “sub-section (1) of section 11”, the words, brackets, sign and figures “, sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11,sub-section (5) of section 15 and section 148” shall be substituted;
(ii) in the Table, -
(a) after serial number 41 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -
(1) (2) (3) (4) (5) “41A Heading 9972 Service by way of transfer of Nil Provided that the promoter shall be development rights (herein liable to pay tax at the applicable rate, refer TDR) or Floor Space on reverse charge basis, on such Index (FSI) (including proportion of value of development rights, additional FSI) on or after or FSI (including additional FSI), or both, 1st April, 2019 for construction as is attributable to the residential of residential apartments by a apartments, which remain un-booked on promoter in a project, intended the date of issuance of completion for sale to a buyer, wholly or certificate, or first occupation of the project, partly, except where the as the case may be, in the following entire consideration has been manner - received after issuance of [GST payable on TDR or FSI (including completion certificate, where additional FSI) or both for construction required, by the competent of the residential apartments in the authority or after its first project but for the exemption occupation, whichever is contained herein] x (carpet area of earlier. the residential apartments in the PUNJAB GOVT. GAZ. (EXTRA), JUNE 24, 2019 (ASAR 3, 1941 SAKA) 320 The amount of GST exemption project which remain un- booked on available for construction of the date of issuance of completion residential apartments in the certificate or first occupation ÷ Total project under this notification carpet area of the residential apartments shall be calculated as under: in the project) [GST payable on TDR or FSI Provided further that tax payable in terms (including additional FSI) or of the first proviso hereinabove shall not both for construction of the exceed 0.5per cent.of the value in case project] x (carpet area of the of affordable residential apartments and 2.5 residential apartments in the per cent. of the value in case of residential project ÷ Total carpet area of apartments other than affordable the residential and commercial residential apartments remaining un- booked apartments in the project ) on the date of issuance of completion certificate or first occupation The liability to pay state tax on the said portion of the development rights or FSI, or both, calculated as above, shall arise on the date of completion or first occupation of the project, as the case may be, whichever is earlier.
41B Heading 9972 Upfront amount (called as Nil Provided that the promoter shall be liable to premium, salami, cost, price, pay tax at the applicable rate, on reverse development charges or by charge basis, on such proportion of upfront any other name) payable in amount (called as premium, salami, cost, respect of service by way of price, development charges or by any other granting of long term lease of name) paid for long term lease of land, as is thirty years, or more, on or attributable to the residential apartments, which after 01.04.2019, for remain un- booked on the date of issuance of construction of residential completion certificate, or first occupation of the apartments by a promoter in project, as the case may be, in the following a project, intended for sale manner - to a buyer, wholly or partly, [GST payable on upfront amount (called as except where the entire premium, salami, cost, price, development consideration has been charges or by any other name) payable for received after issuance of long term lease of land for construction of completion certificate, where the residential apartments in the projectbut required, by the competent for the exemption contained herein] x authority or after its first (carpet area of the residential apartments in occupation, whichever is the project which remain un- booked on the earlier. date of issuance of completion certificate or The amount of GST exemption first occupation ÷ Total carpet area of the available for construction of residential apartments in the project);
residential apartments in the Provided further that the tax payable in terms project under this notification of the first proviso shall not exceed 0.5 per cent.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 24, 2019 (ASAR 3, 1941 SAKA) 321 shall be calculated as under: of the value in case of affordable residential [GST payable on upfront apartments and 2.5 per cent. of the value in amount (called as premium, case of residential apartments other than salami, cost, price, affordable residential apartments remaining development charges or by un-booked on the date of issuance of completion any other name) payable for certificate or first occupation.
long term lease of land for The liability to pay state tax on the said proportion construction of the project] x of upfront amount (called as premium, salami, (carpet area of the residential cost, price, development charges or by any apartments in the project ÷ Total other name) paid for long term lease of land, carpet area of the residential calculated as above, shall arise on the date of and commercial apartments in issue of completion certificate or first occupation the project). of the project, as the case may be.
(iii) after paragraph 1, the following paragraphs shall be inserted, namely, - “1A. Value of supply of service by way of transfer of development rights or FSI by a person to the promoter against consideration in the form of residential or commercial apartments shall be deemed to be equal to the value of similar apartments charged by the promoter from the independent buyers nearest to the date on which such development rights or FSI is transferred to the promoter.
1B. Value of portion of residential or commercial apartments remaining un-booked on the date of issuance of completion certificate or first occupation, as the case may be, shall be deemed to be equal to the value of similar apartments charged by the promoter nearest to the date of issuance of completion certificate or first occupation, as the case may be.”
(iv) in paragraph 3 relating to Explanation, after clause (iv), the following clause shall be inserted, namely: - “(v) The term “apartment” shall have the same meaning as assigned to it in clause (e) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(vi) The term “affordable residential apartment” shall have the same meaning as assigned to it in the Punjab Government, Department of Excise and Taxation, Notification No. S.O.17/P.A.5/Ss.9, 11, 15 and 16/2017 dated the 30th June, 2017, published in the Punjab Government Gazette (Extraordinary), Part III, dated 30th June, 2017, as amended.
(vii) The term “promoter” shall have the same meaning as assigned to it in clause (zk) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(viii) The term “project” shall mean a Real Estate Project or a Residential Real Estate Project.
(ix) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in clause (zn) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(x) The term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the REP;
(xi) The term “carpet area” shall have the same meaning as assigned to it clause (k) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(xii) “an apartment booked on or before the date of issuance of completion certificate or first occupation of the project” shall mean an apartment which meets all the following three conditions, namely- PUNJAB GOVT. GAZ. (EXTRA), JUNE 24, 2019 (ASAR 3, 1941 SAKA) 322
(a) part of supply of construction of the apartment service has time of supply on or before the said date; and
(b) consideration equal to at least one instalment has been credited to the bank account of the registered person on or before the said date; and
(c) an allotment letter or sale agreement or any other similar document evidencing booking of the apartment has been issued on or before the said date.
(xiii) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.”.
2. This notification shall be deemed to have come into force on and with effect from 01st day of April, 2019.
M.P. SINGH, Additional Chief Secretary-cum- Financial Commissioner (Taxation) to Government of Punjab, Department of Excise and Taxation.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 24, 2019 (ASAR 3, 1941 SAKA) 323 1797/6-2019/Pb. Govt. Press, S.A.S. Nagar