G.S.R. (E).-In exercise of the powers conferred by clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017),the Central Government, on the recommendations of the Council,hereby notifies 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 projector in any other form including in cash;

(ii) a promoter,who receiveslong 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 Union Territory tax on, -

(a) the consideration paid byhim 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 monetaryconsideration paid byhim, for supply of development rights or FSI(including additional FSI) relatableto 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 landrelatable to construction ofresidential apartments in the project; and

(d) the supply ofconstruction 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 in clause (zk) of section 2 of theReal 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 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 commercialapartments is not more than 15 per cent.of the total carpet area of all the apartments in the REP.

(vi) “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 basisin accordance with notification No. 13/2017-Union TerritoryTax (Rate),dated 28.06.2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), videGSR No. 704(E), dated28.06.2017, as amended.

3.This notification shall come into forcewith effect fromthe 1stday of April, 2019.
 

[F. No.354/32/2019-TRU]

(Pramod Kumar)
DeputySecretary to the Government of India