9911796707
TMI BlogAmendment in Notification No. 11/2017- State Tax (Rate), dated the 30th June, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... "sub-section (3) and sub-section (4)" shall respectively be inserted; (b) the word "and" after the words and figures "sub-section (5) of section 15" shall be substituted by the symbol ","; (c) after the word, brackets and figures "section (16)", the words and figure "and section 148" shall be inserted; (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,- Table (3) (4) (5) "(i) Construction of affordable residential apartments by a promoter in a Residential Real Estate Project (herein after referred to as RREP) which commences on or after 1st April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, 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. (Provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only; Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person; Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both; Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 3.75 (ic) Construction of affordable residential apartments by a promoter in a Real Estate Project (herein after referred to as REP) other than RREP, which commences on or after 1st April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 0.75 (id) Construction of residential apartments other than affordable residential apartments by a promoter in a REP other than a RREP which commences on or after 1st April, 2019 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding supply by way of services 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 central 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 9 (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, brack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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);-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)" s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority, 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:- (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 sub-clause (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 project has 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, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19" 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 come into force with effect from the 1st 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 projects in respect of which the promoter has not exercised option to pay central 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t) 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 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). (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)* F1 * F2 * F3* F4 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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* F1 * F2 * F3 Where, - Tn= Tax paid on such inputs and input services on which ITC is available under the HPGST 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 determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 Value of booked residential apartments C5 * C12 24 crore 15 Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 16 Total value of supply of residential apartments having t.o.s. prior to transition C14 * C15 4.8 crore 17 ITC to be reversed on transition, Tx= T- Te 18 Eligible ITC (Te)= Tc + Tr 19 T (*see notes below) 1 crore 20 Tc= T x (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) C19 * (C9/ C10) 0.125 crore 21 Tr= T x F1 x F2 x F3 x F4 22 F1 C4 / C10 0.875 23 F2 C13 / C4 0.533 24 F3 C16 / C14 0.200 25 F4 1/ C11 5 26 Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C25 0.467 crore 27 Eligible ITC (Te)=Tc + Tr C26 + C20 0.592 crore 28 ITC to be reversed on transition, Tx= T- Te C19 - C27 0.408 crore * Note:- 1. The value of T at C19 has been estimated for illustration based on weighted average tax on inputs. 2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencemnt of project which is later and transitional credit taken und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crore 37 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) C19 - C36 -0.18 crore 38 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 39 % invoicing after application of cap(Pc + 25%) 45% 40 Total value of supply of residential apartments having t.o.s. prior to transition C33 10.80 crore 41 Consideration received 8.00 crore 42 Total value of supply of residential apartments having t.o.s. prior to transition after application of cap vis-a-vis consideration received 8 cr + 25% of 8 Cr 10.00 crore 43 F3 after application of both the caps C42 / C14 0.42 44 Tr= T x F1 x F2 x F3 x F4 (after application of both the caps) C19 * C22 * C23 * C43 * C25 0.97 45 Eligible ITC (Te)=Tc + Tr (after application of both the caps) C20 + C44 1.10 46 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) C19 - C45 -0.10 crore * Note:- * The value of T at C19 has been estimated for illustration based on weighted average tax on inputs. * In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partments) F4= 1 % Completion of construction as on 31st March, 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 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 and where the same is not required to be declared to the Real Estate Regulatory Authority, it shall be got determined and 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). (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 fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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: (i) where percentage invoicing is more than the percentage completion and the difference between percentage invoicing (per cent. points) and the percentage completion (per cent. points) of construction is more than 25 per cent. 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al real estate project (RREP) A B C D 1 No. of apartments in the project 100 units 2 No. of residential apartments in the project 100 units 3 Carpet area of the residential apartment 70 sqm 4 Total carpet area of the residential apartments C2 * C3 7000 sqm 5 value of each residential apartment 0.60 crore 6 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20% 7 No of apartments booked before transition 80 units 8 Total carpet area of the residential apartment booked before transition C3 * C7 5600 sqm 9 Value of booked residential apartments C5 * C7 48 crore 10 Percentage invoicing of booked residential apartments on or before 31.03.2019 60% 11 Total value of supply of residential apartments having t.o.s. prior to transition C9 * C10 28.8 crore 12 ITC to be reversed on transition, Tx= T- Te 13 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) 14 T (*see notes below) 1 crore 15 F1 1 16 F2 C8 / C4 0.8 17 F3 C11 / C9 0.6 18 F4 1/ C6 5 19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C18 2.4 crore 20 ITC to be reversed on transition, Tx= T- Te C14 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured 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, 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 and services received during the financial year Whether inputs received from registered supplier? (Y/ N) 1 Sand 10 Y 2 Cement 15 Y 3 Steel 20 Y 4 Bricks 15 Y 5 Flooring tiles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed 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 of the apartments: (put (√) in appropriate box) 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 At the rate as specified for item (i) or (ia) or (ib) or (ic) or (id), against serial number 3 in the Table in this notification, as the case may be 2. I understand that this is a onetime option, which once exercised, shall not be allowed to be changed. 3. I also understand that invoices for supply of the service can be issued during the period from 1st April 2019 to 10th Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
