To notify Promoters as class of persons under section 148 of GGST Act, 2017 - 6/2019-State Tax (Rate) - Gujarat SGST

NOTIFICATION FINANCE DEPARTMENT Sachivalaya, Gandhinagar Dated the 30th March, 2019 Notification No. 6 /2019-State Tax (Rate) No.(GHN-37)GST-2019/S.148(14)-TH: - In exercise of the powers conferred by section 148 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on the recommendations of the Council,hereby notifies the following classes of registered persons, namely:- (i) a promoter who receivesdevelopment rights or Floor Space Index(FSI) (including additional FSI) on or after 1st April, 2019for construction of a project against considerationpayable or paid by him, wholly or partly, in the form of construction service of commercial orresidential apartments in the project or in any other form including in cash; (ii) a promoter, who receiveslong term lease of land on or after 1st April, 2019for construction of residential apartments in a projectagainst 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 payState taxon, - (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 ofresidential 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 ofresidential 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 dateof issuance ofcompletion 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 Government Notification, Finance Department No.(GHN-34)GST-2017/S.9(3)(2)-TH dated the 30th June, 2017, Notification No.13/2017- State Tax (Rate), as amended. 3. This notification shall come into force with effect from the 1st day of April, 2019. By order and in the name of the Governor of Gujarat, C J Mecwan Joint Secretary to Government.