Sub: In case of developer, failure to submit Intimation (Annexure IV) to choose option of either 5% or 12%., Goods and Services Tax - GST

[JIGAR SHAH]

Query: As per Notification No 03/2019 dated 29^th Mar 2019 related to Real Estate Projects A developer has to submit Intimation before 20^th May 2019 for declaring which option(5% without ITC or 12% with ITC) they have excised. If the developer has excised the option of 12% with ITC but the Intimation has not been submitted in prescribed format – Annexure-IV. If it is submitted in the current date i.e. 04/01/2020, what are the compliance issues and penalty if any?

Posts / Replies

[Alkesh Jani]

Sir,

In the said Notification for column No. 5 Sl.No. (ie) is given below :-

"Provided also that where the option is not exercised in Form at annexure IV by the 10th 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;

Provided also 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 to be exercised.;"

Hope this will help.

Thanks