Seeks to notify, by exercising powers conferred under section 148 of WBGST Act, 2017, certain class of persons in whose case liability to pay tax shall arise on the date of issuance of completion certificate or on its first occupation, whichever is earlier. - 555-F.T. - 6/2019-State Tax (Rate) - West Bengal SGST

GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT REVENUE NOTIFICATION No. 555-F.T. Howrah, the 29th day of March, 2019. No. 6/2019-State Tax (Rate) In exercise of the powers conferred by section 148 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017), the Governor, on the recommendations of the Council, is pleased hereby to notify the following classes of registered persons, namely: (i) a promoter who receives development rights or Floor Space Index (FSI) (including additional FSI) on or after 1st April, 2019 for construction of a project against consideration payable or paid by him, wholly or partly, in the form of construction service of commercial or residential apartments in the project or in any other form including in cash; (ii) a promoter, who receives long term lease of land on or after 1st April, 2019 for construction of residential apartments in a project against consideration payable or paid by him, in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name), as the registered persons in whose case the liability to pay State tax on, (a) the consideration paid by him in the form of construction service of commercial or residential apartments in the project, for supply of development rights or FSI (including additional FSI); (b) the monetary consideration paid by him, for supply of development rights or FSI (including additional FSI) relatable to construction of residential apartments in project; (c) the upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid by him for long term lease of land relatable to construction of residential apartments in the project; and (d) the supply of construction service by him against consideration in the form of development rights or FSI (including additional FSI), shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier. 2. Explanation: For the purpose of this notification, (i) 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); (ii) the term promoter shall have the same meaning as assigned to it in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (iii) the term project shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP); (iv) the term Real Estate Project (REP) shall have the same meaning as assigned to it in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);. (v) 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. (vi) the term 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. (vii) Tax on services covered by sub-para (i) and (ii) of paragraph 1 above is required to be paid under reverse charge basis in accordance with notification No. 1137-F.T.- 28.06.2017 [13/2017-State Tax (Rate)], dated 28.06.2017, as amended. 3. This notification shall come into force with effect from the 1st day of April, 2019. By order of the Governor, RAJSEKHAR BANDYOPADHYAY, Additional Secretary to the Government of West Bengal