Tax so 76 Bare Act

The source publishes this enactment as a single document rather than provision by provision, so the whole text is below and there are no per-section pages for it. Nothing has been shortened.

Type	Notification
Year	2017
Jurisdiction	State of Punjab
Status	In force as published by the source
Text	Published as one document, as the source published it
Subjects	taxation

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 357

PART III GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION BRANCH-II) NOTIFICATION The 18th July, 2019 No. S.O.76/P.A.5/2017/Ss.9, 11, 15, 16 and 148/Amd./2019.- 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 148of 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, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, is pleased to make the following amendment in the Government of Punjab, Department of Excise and Taxation, Notification No. S.O.17/ P.A.5/2017/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, namely:- AMENDMENT In the said notification, -

(i) in the opening paragraph,-

(a) after the words, brackets and figure “conferred by sub-section (1)”, the words, brackets and figures “sub-section (3) and sub-section (4)” shall respectively be inserted;

(b) after the words and figures “sub-section (5) of section 15”, for the word "and", the sign "," shall be substituted ;

(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, - PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 358 Table

(3) (4) (5) “(i) Construction of affordable 0.75 Provided that the state tax at the rate residential apartments by a promoter in specified in column (4) shall be paid in a Residential Real Estate Project cash, that is, by debiting the electronic (herein after referred to as RREP) cash ledger only;

which commences on or after 1st April, Provided also that credit of input tax 2019 or in an ongoing RREP in respect charged on goods and services used in of which the promoter has not exercised supplying the service hasnot been taken option to pay state tax on construction except to the extent as prescribed in of apartments at the rates as specified Annexure I in the case of REP other for item (ie) or (if) below, as the case than RREP and in Annexure II in the may be, in the manner prescribed case of RREP;

therein,intended for sale to a buyer, Provided also that the registered wholly or partly, except where the person shall pay, by debit in the entire consideration has been received electronic credit ledger or electronic after issuance of completion certificate, cash ledger, an amount equivalent to the where required, by the competent input tax credit attributable to authority or after its first occupation, construction in a project, time of supply whichever is earlier. of which is on or after 1st April, 2019, (Provisions of paragraph 2 of this which shall be calculated in the manner notification shall apply for valuation as prescribed in the Annexure I in the of this service) case of REP other than RREP and in

(ia) Construction of residential 3.75 Annexure II in the case of RREP;

apartments other than affordable Provided also that where a registered residential apartments by a promoter in person (landowner- promoter) who an RREP which commences on or transfers development right or FSI after 1st April, 2019 or in an ongoing (including additional FSI) to a promoter RREP in respect of which the promoter (developer- promoter) against consihas not exercised option to pay State tax deration, wholly or partly, in the form of on construction of apartments at the construction of apartments, - rates as specified for item (ie) or (if) (i) the developer- promoter shall pay tax below, as the case may be, in the manner on supply of construction of apartments prescribed therein, intended for sale to to the landowner- promoter, and a buyer, wholly or partly, except where (ii) such landowner – promoter shall be the entire consideration has been eligible for credit of taxes charged from received after issuance of completion him by the developer promoter towards PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 359 certificate, where required, by the the supply of construction of apartments competent authority or after its first by developer- promoter to him, provided occupation, whichever is earlier. the landowner- promoter further supplies (Provisions of paragraph 2 of this such apartments to his buyers before notification shall apply for valuation of issuance of completion certificate or first this service) occupation, whichever is earlier, and pays

(ib) Construction of commercial tax on the same which is not less than apartments (shops, offices, godowns the amount of tax charged from him on etc.) by a promoter in an RREP which construction of such apartments by the commences on or after 1st April, 2019 developer- promoter.

which the promoter has not exercised Explanation. - option to pay State tax on construction (i) “developer- promoter” is a promoter of apartments at the rates as specified who constructs or converts a building into for item (ie) or (if) below, as the case apartments or develops a plot for sale, may be, in the manner prescribed therein, (ii) “landowner- promoter” is a promoter intended for sale to a buyer, wholly or who transfers the land or development partly, except where the entire rights or FSI to a developer- promoter consideration has been received after for construction of apartments and issuance of completion certificate, where receives constructed apartments against required, by the competent authority or such transferred rights and sells such after its first occupation, whichever is apartments to his buyers independently.

earlier. Provided also that eighty percent of value (Provisions of paragraph 2 of this of input and input services, [other than notification shall apply for valuation of services by way of grant of development this service) rights, long term lease of land (against

(ic) Construction of affordable residential upfront payment in the form of premium, apartments by a promoter in a Real salami, development charges etc.) or FSI Estate Project (herein after referred to (including additional FSI), electricity, high as REP) other than RREP, which speed diesel, motor spirit, natural gas], commences on or after 1st April, 2019 used in supplying the service shall be or in an ongoing REP other than RREP received from registered supplier only;

in respect of which the promoter has not Provided also that inputs and input exercised option to pay State tax on services on which tax is paid on reverse construction of apartments at the rates charge basis shall be deemed to have as specified for item (ie) or (if) below, as been purchased from registered person;

the case may be, in the manner Provided also that where value of input prescribed therein, intended for sale to a and input services received from buyer, wholly or partly, except where the registered suppliers during the financial PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 360 entire consideration has been received year (or part of the financial year till the after issuance of completion certificate, date of issuance of completion certificate where required, by the competent or first occupation of the project, authority or after its first occupation, whichever is earlier)fallsshortof the said whichever is earlier. threshold of 80 per cent., tax shall be paid (Provisions of paragraph 2 of this by the promoter on value of input and notification shall apply for valuation of input services comprising such shortfall this service) at the rate of eighteen percent on reverse

(id) Construction of residential charge basis and all the provisions of the apartments other than affordable Punjab Goods and Services Tax Act, residential apartments by a promoter in 2017 shall apply to him as if he is the a REP other than a RREP which person liable for paying the tax in relation commences on or after 1st April, 2019 to the supply of such goods or services or in an ongoing REP other than RREP or both;

in respect of which the promoter has Provided also that notwithstanding not exercised option to pay state tax anything contained herein above, where on construction of apartments at the rates cement is received from an unregistered as specified for item (ie) or (if) below, person, the promoter shall pay tax on as the case may be, in the manner supply of such cement at the applicable prescribed therein, intended for sale to a rates on reverse charge basis and all the buyer, wholly or partly, except where the provisions of the Punjab Goods and entire consideration has been received Services Tax Act, 2017, shall apply to him after issuance of completion certificate, as if he is the person liable for paying the where required, by the competent tax in relation to such supply of cement;

authority or after its first occupation, (Please refer to the illustrations in whichever is earlier. annexure III) (Provisions of paragraph 2 of this Explanation. - notification shall apply for valuation of 1. The promoter shall maintain project this service) 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 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 361 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 6 Provided that in case of ongoing project, ongoing project under any of the the registered person shall exercise one schemes specified in sub-item (b), sub- time option in the Form at Annexure IV item (c), sub-item (d), sub-item (da) and to pay state tax on construction of sub-item (db) of item (iv); sub-item (b), apartments in a project at the rates as sub-item (c), sub-item (d) and sub-item specified for item (ie) or (if), as the case

(da) of item (v); and sub-item (c) of item may be, by the 10th of May, 2019;

(vi), against serial number 3 of the Table, Provided also that where the option is in respect of which the promoter has not exercised in Form at annexure IV by exercised option to pay state tax on the 10th of May, 2019, option to pay tax construction of apartments at the rates at the rates as applicable to item (i) or as specified for this item. (ia) or (ib) or (ic) or (id) above, as the (Provisions of paragraph 2 of this case may be, shall be deemed to have notification shall apply for valuation of been exercised;

this service) Provided also that invoices for supply of

(if) Construction of a complex, building, the service can be issued during the period civil structure or a part thereof, including,- from 1st April 2019 to 10th May 2019

(i) commercial apartments (shops, before exercising the option, but such offices, godowns etc.) by a promoter invoices shall be in accordance with the in a REP other than RREP, option to be exercised.;

(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 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 362 of apartments at the rates as specified for this item in the manner prescribed herein, but excluding supply by way of services 9 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 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 under this entry.

(Provisions of paragraph 2 of this notification shall apply for valuation of this service

(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;

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, - PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 363

(3) (4) (5)

(va) Composite supply of works contract 6 Provided that carpet area of the as defined in clause (119) of section 2 affordable residential apartments as of the Punjab Goods and Services Tax specified in the entry in column (3) Act, 2017, other than that covered by relating to this item, is not less than 50 items (i), (ia), (ib), (ic), (id), (ie) and (if) per cent. of the total carpet area of all above, supplied by way of construction, the apartments in the project;

erection, commissioning, installation, Provided also that for the purpose of completion, fitting out, repair, maintenance, determining whether the apartments at renovation, or alteration of affordable the time of supply of the service are residential apartments covered by sub- affordable residential apartments clause (a) of clause (xvi) of paragraph 4 covered by sub- clause (a) of clause (xvi) below, in a project which commences on of paragraph 4 below or not, value of or after 1st April, 2019, or in an ongoing the apartments shall be the value of project in respect of which the promoter similar apartments booked nearest to has not exercised option to pay state the date of signing of the contract for tax on construction of apartments at the supply of the service specified in the rates as specified for item (ie) or (if), as entry in column (3) relating to this item;

the case may be, in the manner Provided also that in case it finally turns prescribed therein, out that the carpet area 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 insub- 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.

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 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 9 -”;

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 Punjab Goods and Services Tax Act, 2017 (Punjab Act No.5 of 2017), as prescribed innotification No. S.O.70/P.A.5/2017/S.9/2019 dated the 06th June, 2019, published in Punjab Government (Extraordinary) Gazette, dated the 24th June, 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.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 364

(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), subitem (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 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 31st 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 31st March, 2019 and (b) at least one instalment has been credited to the bank account of the registered person on or before the 31st 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 31st 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 1st April, 2019, or in an ongoing project in respect of which the promoter has not exercised option in the prescribed form 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, having carpet area not exceeding 60 square meter in metropolitan cities or 90 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 365 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; - 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 locationcharges, 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 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.

(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 31st March, 2019, and it is certified by any of the following that construction of the project has started on or before 31st March, 2019:- PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 366

(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 subclause (a) above that construction of the project has started on or before the 31st March, 2019;

(c) completion certificate has not been issued or first occupation of the projecthas not taken place on or before the 31st March, 2019;

(d) apartments being constructed under the project have been, partly or wholly, booked on or before the 31st 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 31st March, 2019, if the earthwork for site preparation for the project has been completed and excavation for foundation has started on or before the 31st 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 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 367 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 establishedunder 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 1st 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;

(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 be deemed to have come into force on and with effect from 01st day of April, 2019.

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 1st April, 2019, shall be calculated project wise for all projects which commence on or after 1st April, 2019 or ongoing projectsin 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 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 31st 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 1st April, 2019, may be denoted as Tx. Tx shall be calculated as under:

Tx=T-Te PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 368 Where,

(i) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the REP from 1st July, 2017 to 31st March, 2019 including transitional credit taken on 1st 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 31st 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 31st March, 2019 and which shall be calculated as under, Tr= T* F 1 * F 2 * F 3 * F 4 Where, - F1= Carpet area of residential apartments in REP Total carpet area of commercial and residential apartments in the REP F2 = Total carpet area of residential apartment booked on or before 31st March, 2019 Total carpet area of the residential apartment in REP Such Value of supply of construction of residential apartments booked on or before F3 = 31st March, 2019 which has time of supply on or before 31st March, 2019 Total value of supply of construction of residential apartments booked on or before 31st March, 2019 (F3 is to account for percentage invoicing of booked residential apartments) F4= 1 % Completion of construction as on 31st March, 2019 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 369

Illustration: where one- fifth (twenty percent) of the construction has been completed, F4 shall be 100 ÷ 20 = 5.

Explanation: “% Completion of construction as on 31st 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 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 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:

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)* F 1 * F 2 * F 3 * F 4 or Tr = (T- T1)* F 1 * F 2 * F 3 * F 4

(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.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 370

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 1st 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 31stMarch, 2019, input tax credit attributable to construction of residential portion which has time of supply on or after 1st 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 31stMarch, 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 31st 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 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 371 Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31st March, 2019 and which shall be calculated as under, Tr = Tn* F 1 * F 2 * F 3 Where, - Tn= Tax paid on such inputs and input services on whichITCis 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 1st 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 thedifference 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 31st March, 2019 exceeds the consideration actually received on or prior to 31st 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 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 1st April, 2019 exceeds the value of actual consumption of the inputs and input services used in the percentage of construction completed as on 31st 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.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 372

Illustration 1:

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 373

Illustration 2:

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 374 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 1st April, 2019, shall be calculated project wise for all projects which commence on or after 1st April, 2019 or ongoing projectsin 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 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 31st 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 1st 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 1st July, 2017 to 31stMarch, 2019 including transitional credittaken on 1st 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 31stMarch, 2019;

(b) Te shall be calculated as under:

Te= T* F 1 * F 2 * F 3 * F 4 Where, - F 1 = 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 31stMarch, 2019 F 2 = Total carpet area of the residential and commercial apartment in the RREP PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 375 Such value of supply of construction of residential and commercial apartments booked on or before 31stMarch, 2019 which has time of supply on or before 31stMarch, 2019 F 3 = Total value of supply of construction of residential and commercial apartments booked on or before 31stMarch, 2019 (F3 is to account for percentage invoicing of booked residential apartments) F 4 = 1 % Completion of construction as on 31stMarch, 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 31stMarch, 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 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 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.

(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 1st 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 31stMarch, 2019, input tax credit attributable to construction of residential and commercial portion which has time of supply on or after 1st April, 2019, shall be calculated and the amount equal to Tx shall be paid or taken credit of, as PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 376 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 31stMarch, 2019.

(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 31stMarch, 2019may be denoted as Te which shall be calculated as under, Te = Tn* F 1 * F 2 * F 3 Where, - Tn= Tax paid on such inputs and input services on which ITCis available under the CGST Act,received in 2019-20 for construction of residential and commercial apartments in the RREP.

F 1 , F 2 and F 3 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 1st 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:

(ii) where the value of invoices issued on or prior to 31stMarch, 2019 exceeds the consideration actually received on or prior to 31stMarch, 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 deemed to be actual consideration received plus 25 per cent. of the actual consideration received; and PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 377

(iii) where, the value of procurement of inputs and input services prior to 1st April, 2019 exceeds the value of actual consumption of the inputs and input services used in the percentage of construction completed as on 31st 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.

Illustration 1:

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 378

Illustration 2:

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 379 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 Whether inputs received and services received during from registered supplier?

the financial year (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 10 Y drawing etc.

8 Aluminium windows, Ply, 15 Y commercial wood 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, PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 380 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 Whether inputs received and services received during from registered supplier?

the financial year (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 7 Architect/ designing/ CAD 10 Y drawing etc.

8 Aluminium windows, Ply, 15 N commercial wood 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 Whether inputs procured and services received during from registered supplier?

the financial year (Y/ N) 1 Sand 10 N 2 Cement 15 N 3 Steel 15 Y 4 Bricks 10 Y PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 381 5 Flooring tiles 10 Y 6 Paints 5 Y 7 Architect/ designing/ CAD 10 Y drawing etc.

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.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 382 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 10th 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 At the rate as specified for At the rate as specified for of the apartments: item (ie) or (if), against serial item (i) or (ia) or (ib) or (ic) or (put ( ) in appropriate box) number 3 in the Table in (id), against serial number 3 in this notification, as the case the Table in this notification, may be as the case may be

2. I understand that this is a onetime option, which once exercised, shall not be allowed to be changed.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 383 P

3. I also understand that invoices for supply of the service can be issued during the period from 1st April 2019 to 10th May 2019 before exercising the option, but such invoices shall be in accordance with the option being exercised herein.

Signature _____________________ Name _______________________ Designation ___________________ Place __________________ Date __________________ M.P. SINGH, Additional Chief Secretary-cum- Financial Commissioner (Taxation) to Government of Punjab, Department of Excise and Taxation.

PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 384 1821/7-2019/Pb. Govt. Press, S.A.S. Nagar

Tax so 76

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