UNION TERRITORY TAX (RATE) NTF NO. 04/2019 DATE 29/03/2019
Seeks to amend notification No. 12/2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector.
G.S.R. (E). - In exercise of the powers conferredby sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017-Union TerritoryTax (Rate), dated the 28thJune, 2017,published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), videnumber G.S.R. 703(E),dated the 28th June, 2017, namely:-
In the said notification, -
(i) in the opening paragraph, forthe word, bracketsand figures “sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017)” the word, brackets and figures “, sub-section (3) and sub-section (4) of section 7, sub-section (1) of section 8, and clause (iv) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (5) of section 15and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017),” shall be substituted;
(ii) in the Table, -
(a) after serial number 41 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -
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(1) |
(2) |
(3) |
(4) |
(5) |
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“41A |
Heading 9972 |
Service by way of transfer of development rights (herein refer TDR) or Floor Space Index (FSI) (including additional FSI) on or after 1st April, 2019 for construction of residential apartments by a promoter in a project, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after apartments in the project which remain un-booked on the date of issuance of completion certificate or first occupation÷Total carpet area of the residential apartments in the project)
Provided further that tax payable in terms of the first proviso hereinabove shall not exceed 0.5per cent.of thevalue in case of affordable residential apartments and 2.5per cent. of the value in case of residential apartments other than affordable residential apartments remaining un-booked on the date of issuance of completion certificate or first occupation
The liability to pay Union Territory tax on the said portion of the development rights or FSI, or both, calculated as above, shall arise on the date of completion or first occupation of the project, as the case may be, whichever is earlier.
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Nil |
Provided that the promoter shall be liable to pay tax at the applicable rate,on reverse charge basis, on such proportion of value of development rights, or FSI(including additional FSI), or both, as is attributable to the residential apartments, which remainun-booked on the date of issuance of completion certificate, or first occupation of theproject,asthe case may be, in the following manner-
[GST payable on TDR or FSI(including additional FSI) orbothfor construction of the residential apartments in the project but for the exemption contained herein]x (carpet area of the residential issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
The amount of GST exemption available for construction of residential apartments in the project under this notification shall be calculated as under:
[GST payable on TDR or FSI (including additional FSI) or both for construction of the project] x (carpet area of the residential apartments in the project ÷ Total carpet area of the residential and commercial apartments in the project ) |
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41B |
Heading 9972 |
Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more, on or after 01.04.2019, for construction of residential apartments by a promoter in a project, 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.
The amount of GST exemption available for construction of residential apartments in the project under this notification shall be calculated as under:
[GST payable on upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for long term lease of land for construction of the project] x (carpet area of the residential apartments in the project ÷Total carpet area of the residential and commercial apartments in the project). |
Nil |
Provided that the promoter shall be liable to pay tax at the applicable rate, on reverse charge basis, onsuch proportion of upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid for long term lease of land, as is attributable to the residential apartments, which remainun-bookedon the date of issuance of completion certificate, or first occupation of the project, as the case may be, in the following manner-
[GST payable on upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for long term lease of land for construction of the residential apartments in the project but for the exemption contained herein] x (carpet area of the residential apartments in the project which remain un-booked on the date of issuance of completion certificate or first occupation ÷ Total carpet area of the residential apartments in the project);
Provided further that the tax payablein terms of the first proviso shall not exceed 0.5 per cent. of thevalue in case of affordable residentialapartments and 2.5per cent.of the value in case of residential apartments other than affordable residential apartments remaining un-bookedon the date of issuance of completion certificate or first occupation.
The liability to pay Union Territorytax on the said proportion of upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid for long term lease of land, calculated as above, shall arise on the date of issue of completion certificate or first occupation of the project, as the case may be. |
(iii) after paragraph 1, the following paragraphs shall be inserted, namely, -
“1A. Value of supply of service by way of transfer of development rights or FSI by a person to the promoteragainst consideration in the form of residentialor commercial apartments shallbe deemed to be equal to the value of similar apartmentscharged by the promoterfrom the independent buyers nearest to the date on which such development rights or FSI is transferred to the promoter.
1B. Value of portion ofresidential or commercial apartments remainingun-bookedon the date of issuance of completion certificate or first occupation, as the case may be, shall be deemed to be equal to the value of similarapartments charged by the promoternearest to the date of issuance of completion certificate or first occupation, as the case may be.”
(iv) in paragraph 3 relating to Explanation, after clause (iv), the following clause shall be inserted, namely: -
“(v) Theterm “apartment” shall have the same meaning as assigned to it in clause (e) under section 2 of the Real Estate (Regulation and Development) Act, 2016(16 of 2017).
(vi) The term “affordable residential apartment” shall have the same meaning as assigned to it in the notification No. 11/2017-Union TerritoryTax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) dated 28thJune, 2017 vide GSR number 702 (E) dated 28thJune, 2017, as amended.
(vii) The term “promoter” shall have the same meaning as assigned to it in clause (zk) under section 2 of the Real Estate (Regulation and Development) Act, 2016(16 of 2017).
(viii) The term “project” shall mean a Real Estate Project or a Residential Real Estate Project.
(ix) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in clause (zn) under section 2 of the Real Estate (Regulation and Development) Act, 2016(16 of 2017).
(x) The term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments isnot more than 15 per cent.of the total carpet area of all the apartments in the REP;
(xi) The term “carpet area” shall have the same meaning as assigned to it clause (k) under section 2 of the Real Estate (Regulation and Development) Act, 2016(16 of 2017).
(xii) “an apartment booked on or beforethe date of issuance of completion certificate or first occupation of the project” shall mean an apartment which meets all the following three conditions, namely -
(a) part of supply of construction of the apartment service has time of supply on or before the said date; and
(b) consideration equal to at least one instalment has been credited to the bank account of the registered person on or before the said date; 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 said date.
(xiii) “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 forcewith effectfromthe 1stday of April, 2019.
[F. No.354/32/2019-TRU]
(Pramod Kumar)
DeputySecretary to the Government of India
Note: -The principal notification No. 12/2017 -Union TerritoryTax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, videnumber G.S.R. 703(E), dated the 28th June, 2017and was last amended by notification No.28/2018-Union Territory Tax (Rate), dated the 31st December, 2018 vide number G.S.R. 1280 (E), dated the 31st December, 2018.
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