EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 657 CUTTACK, SATURDAY, MARCH 30, 2019/CHAITRA 9, 1941
FINANCE DEPARTMENT
NOTIFICATION
The 30th March, 2019
S.R.O. No.123/2019— In exercise of the powers conferred by sub-section (1) of Section
11 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of 2017), the State Government,
on being satisfied that it is necessary in the public interest so to do, on the recommendations of the
Goods and Services Tax Council, hereby make the following further amendments in the notification
of the Government of Odisha, in the Finance Department No. 19873-FIN-CT1-TAX-0022/2017, dated
the 29th June,2017 published in the Extraordinary issue No.1144 of the Odisha Gazette, dated the 29th
June,2017 bearing S.R.O. No. 306/2017 as amended from time to time, and the last such amendment in
the notification of Government of Odisha, in the Finance Department No. 40954-FIN-CT1-TAX-
0043/2017 dated the 31st December,2018 published in the Extraordinary issue No.2465 of the
Odisha Gazette, dated the 31st December,2018 bearing S.R.O. No. 496/2018 namely:—
In the said notification, —
(i) in the opening paragraph, for the word, brackets and figures “sub-section (1) of Section
11” the word, brackets and figures “, sub-section (3) and sub-section (4) of Section 9, sub-section
(1) of Section 11,sub-section (5) of Section 15 and Section 148,” 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:—
(1)
(2)
(3)
(4)
(5)
“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 issuance of
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 remain un-
booked on 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 TDR or FSI (including
additional FSI) or both for construction of
the residential apartments in the project
but for the exemption contained herein] x
(carpet area of the residential apartments
2
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 )
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
0.5 per cent. of the value in case of
affordable residential apartments and 2.5 per
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 State 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.
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,
Nil
Provided that the promoter shall be liable to
pay tax at the applicable rate, on reverse
charge basis, on such 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 remain un-booked on 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
3
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).
residential apartments in the project);
Provided further that the tax payable in terms
of the first proviso shall not exceed 0.5 per
cent. of the value in case of affordable
residential apartments and 2.5 per 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 State tax 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
promoter against consideration in the form of residential or commercial apartments shall be deemed
to be equal to the value of similar apartments charged by the promoter from the independent buyers
nearest to the date on which such development rights or FSI is transferred to the promoter.
1B. Value of portion of residential or commercial apartments remaining un-booked on 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 similar apartments charged by the promoter nearest 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) The term “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 of Odisha, in the Finance Department No. 19869-FIN-CT1-TAX-0022/2017 dated
the 29th June,2017 published in the Extraordinary issue No.1143 of the Odisha Gazette, dated the 29th
June,2017 bearing S.R.O. No. 305/2017 as amended from time to time.
4
(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 is not 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 the 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 force with effect from the 1st day of April, 2019.
[No.11250 – FIN-CT1-TAX-0043/2017/FIN.]
By Order of the Governor
SAUMYAJIT ROUT
Deputy Secretary to the Government
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10
Ex. Gaz. 2608-173+300