EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 661 CUTTACK, SATURDAY, MARCH 30, 2019/CHAITRA 9, 1941

FINANCE DEPARTMENT

NOTIFICATION

The 30th March, 2019

S.R.O. No.127/2019— In exercise of the powers conferred by sub-sections (1), (3) and

(4) of Section 9, sub-section (1) of Section 11, sub-section (5) of Section 15, sub-section (1) of

Section 16 and section 148 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of

2017), the State Government, on the recommendations of the Goods and Services Tax Council, and

on being satisfied that it is necessary in the public interest so to do, hereby makes the following

further amendments in the notification of the Government of Odisha, in the Finance Department No.

19869-FIN-CT1-TAX-0022/2017, dated the 29^th June,2017, published in the Extraordinary issue

No.1143 of the Odisha Gazette, dated the 29^th June,2017 bearing S.R.O. No. 305/2017, as amended

from time to time, and last such amendment in the notification of Government of Odisha, in the

Finance Department No. 40962-FIN-CT1-TAX-0043/2017, dated the 31^st December,2018 published in

the Extraordinary issue No.2467 of the Odisha Gazette, dated the 31^st December,2018 bearing S.R.O.

No. 498/2018, namely:—

In the said notification, —

(i) in the opening paragraph,

(a) after the word, bracket and figure “conferred by sub-section (1),”, the word, brackets and

figures “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 “,”;

shall be inserted;

(ii) in the Table, -

(a)

against serial number 3, for item (i), and the entries relating thereto in columns (3), (4) and

(5), the following items and entries shall be substituted, namely, —

Table

(3)

(4)

(5)

“(i)

Construction

affordable

residential

apartments by a promoter in a Residential Real

Estate Project (hereinafter referred to as RREP)

which commences on or after 1^st April, 2019 or in

an ongoing RREP in respect of which the promoter

has not exercised option to pay State tax on

0.75

Provided that the State tax at the rate

specified in column (4) shall be paid in cash,

that is, by debiting the electronic cash ledger

only;

Provided also that credit of input tax charged

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)

on goods and services used in supplying the

service hasnot been taken except to the extent

as prescribed in Annexure I in the case of

REP other than RREP and in Annexure II in

the case of RREP;

Provided also that the registered person shall

pay, by debit in the electronic credit ledger or

electronic cash ledger, an amount equivalent

to the input tax credit attributable to

construction in a project, time of supply of

which is on or after 1^st April, 2019, which

shall be calculated in the manner as

prescribed in the Annexure I in the case of

REP other than RREP and in Annexure II in

the case of RREP;

Provided also that where a registered person

(landowner-

promoter)

who

transfers

development

right

FSI

(including

additional FSI) to a promoter (developer-

promoter) against consideration, wholly or

partly, in the form of construction of

apartments, -

(i) the developer- promoter shall pay tax on

supply of construction of apartments to

the land owner- promoter, and

(ii) such land owner – promoter shall be

eligible for credit of taxes charged from

him by the developer promoter towards

the supply of construction of apartments

by developer- promoter to him, provided

the landowner- promoter further supplies

such apartments to his buyers before

issuance of completion certificate or first

occupation, whichever is earlier, and

pays tax on the same which is not less

than the amount of tax charged from him

on construction of such apartments by the

developer- promoter.

(ia) Construction of residential apartments other

than affordable residential apartments by a

promoter in an RREP which commences on or

after 1^st April, 2019 or in an ongoing RREP in

respect of which the promoter has not exercised

option to pay State 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)

3.75

(ib) Construction of commercial apartments

(shops, offices, godowns etc.) by a promoter in an

RREP which commences on or after 1^st April,

2019 or in an ongoing RREP in respect of which

the promoter has not exercised option to pay State

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)

3.75

(ic)

Construction

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 1^st April,

2019 or in an ongoing REP other than RREP in

respect of which the promoter has not exercised

option to pay State 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

Explanation. -

(i) “developer- promoter” is a promoter who

constructs or converts a building into

apartments or develops a plot for sale,

(ii) “landowner- promoter” is a promoter

who transfers the land or development

rights or FSI to a developer- promoter for

construction of apartments and receives

constructed apartments against such

transferred

rights

and

sells

such

apartments to his buyers independently.

Provided also that eighty percent of value of

input and input 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], 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 Odisha

Goods and Services Tax Act, 2017 (Odisha

Act 7 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;

(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 1^st April, 2019 or in an

ongoing REP other than RREP in respect of which

the promoter has not exercised option to pay State

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)

3.75

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

cement at the applicable rates on reverse

charge basis and all the provisions of the

Odisha Goods and Services Tax Act, 2017

(Odisha Act 7 of 2017), shall apply to him as

if he is the person liable for paying the tax in

relation to such supply of cement;

(Please refer to the illustrations in annexure

III)

Explanation. -

1. The promoter shall maintain project wise

account of inward supplies from registered

and unregistered supplier and calculate tax

payments on the shortfall at the end of the

financial year and shall submit the same in

the prescribed form electronically on the

common portal by end of the quarter

following the financial year. The tax liability

on the shortfall of inward supplies from

unregistered person so determined shall be

added to his output tax liability in the month

not later than the month of June following the

end of the financial year.

2. Notwithstanding anything contained in

Explanation 1 above, tax on cement received

from unregistered person shall be paid in the

month in which cement is received.

3. Input Tax Credit not availed shall be

reported every month by reporting the same

as ineligible credit in GSTR-3B [Row No. 4

(D)(2)].

(ie) Construction of an apartment in an ongoing

project under any of the schemes specified in sub-

item (b), sub-item (c), sub-item (d), sub-item (da)

and sub-item (db) of item (iv); sub-item (b), sub-

item (c), sub-item (d) and sub-item (da) of item

(v); and sub-item (c) of item (vi), against serial

number 3 of the Table, in respect of which the

promoter has exercised option to pay State tax on

Provided that in case of ongoing project, the

registered person shall exercise one time

option in the Form at Annexure IV to pay

State tax on construction of apartments in a

project at the rates as specified for item (ie) or

(if), as the case may be, by the 10^th of May,

2019;

construction of apartments at the rates as specified

for this item.

(Provisions of paragraph 2 of this notification shall

apply for valuation of this service)

Provided also that where the option is not

exercised in Form at annexure IV by the 10^th

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

1^st April 2019 to 10^th May 2019 before

exercising the option, but such invoices shall

be in accordance with the option to be

exercised.;

(if) Construction of a complex, building, civil

structure or a part thereof, including,-

(i) commercial apartments (shops, offices,

godowns etc.) by a promoter in a REP other

than RREP,

(ii) residential apartments in an ongoing

project, other than affordable residential

apartments, in respect of which the promoter

has exercised option to pay State tax on

construction of apartments at the rates as

specified for this item in the manner prescribed

herein,

but excluding 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 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.

(Provisions of paragraph 2 of this notification shall

apply for valuation of this service

(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, brackets, figures and letters “other than that

covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above” shall be inserted;

d. after item (v) and entries relating thereto in column (3), (4) and (5), the following items

and entries shall be inserted, namely, —

(3)

(4)

(5)

(va) Composite supply of works contract as

defined in clause (119) of Section 2 of the Odisha

Goods and Services Tax Act, 2017, other than

that covered by items (i), (ia), (ib), (ic), (id), (ie)

and (if) above, supplied by way of construction,

erection, commissioning, installation, completion,

fitting out, repair, maintenance, renovation, or

alteration of affordable residential apartments

covered by sub- clause (a) of clause (xvi) of

paragraph 4 below, in a project which commences

on or after 1^st April, 2019, or in an ongoing

project in respect of which the promoter has not

exercised option to pay State tax on construction

of apartments at the rates as specified for item (ie)

or (if), as the case may be, in the manner

prescribed therein,

Provided that carpet

area of the affordable

residential apartments

as specified in the

entry in column (3)

relating to this item, is

not less than 50 per

cent.

the

total

carpet area of all the

apartments

the

project;

Provided also that for

the

purpose

determining

whether

the apartments at the

time of supply of the

service are affordable

residential apartments

covered

sub-

clause (a) of clause

(xvi) of paragraph 4

below or not, value of

the apartments shall

be the value of similar

apartments

booked

nearest to the date of

signing of the contract

for

supply

the

service specified in

the entry in column

(3) relating to this

item;

Provided also that in

case it finally turns

out that the carpet area

the

affordable

residential apartments

booked or sold before

or after completion,

for

which

gross

amount

actually

charged was forty five

lakhs rupees or less

and the actual carpet

area was within the

limits prescribed in

sub- clause (a) of

clause

(xvi)

paragraph 4 below,

was less than 50 per

cent.

the

total

carpet area of all the

apartments

the

project, the recipient

of the service, that is,

the promoter shall be

liable to pay such

amount of tax on

reverse charge basis

as is equal to the

difference between the

tax payable on the

service

the

applicable rate but for

the

rate

prescribed

herein and the tax

actually paid at the

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); sub-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)” shall be substituted;

(d)

after serial number 38 in column (1) and the entries relating thereto in column (2), (3), (4)

and (5) the following serial number and entries shall be inserted, namely: -

(1)

(2)

(3)

(4)

(5)

“39.

Chapter 99

Supply of 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.)

FSI

(including

additional

FSI)

unregistered person to a promoter for

construction of a project on which tax is

payable by the recipient of the services

under sub-section 4 of Section 9 of the

Odisha Goods and Services Tax Act, 2017

(Odisha Act 7 of 2017), as prescribed in

notification No. 11234-FIN-CT1-TAX-

0043-2017, dated 30^th March, 2019,

published in the Extraordinary issue No. 653

of the Odisha Gazette, dated the 30^th March,

2019 bearing S.R.O. No. 119/2019 dated

30^th March, 2019

Explanation. -

This entry is to be taken to apply to all

services which satisfy the conditions

prescribed herein, even though they may

be covered by a more specific chapter,

section or heading elsewhere in this

notification.

-”;

(iii) in paragraph 2,-

(a) for the words, brackets, letters and figures “sub-item (b), sub-item (c), sub-item (d), sub-

item (da) and sub-item (db) of item (iv); sub-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, letters and figures “

(i) (ia), (ib), (ic), (id), (ie) and (if)” shall be substituted;

(b) in the Explanation, after the words “this paragraph” the words “and paragraph 2A below”

shall be inserted;

(iv) after paragraph 2, the following paragraph shall be inserted, namely, —

“2A. Where a registered person transfers development right or FSI (including additional FSI) to

a promoter against consideration, wholly or partly, in the form of construction of apartments,

the value of construction service in respect of such apartments shall be deemed to be equal to

the total Amount charged for similar apartments in the project from the independent buyers,

other than the person transferring the development right or FSI (including additional FSI),

nearest to the date on which such development right or FSI (including additional FSI) is

transferred to the promoter, less the value of transfer of land, if any, as prescribed in paragraph

2 above.”

(v) in paragraph 4 relating to Explanation, after clause (xii), the following clauses shall be inserted,

namely:—

“(xiii) an apartment booked on or before the 31^st March, 2019 shall mean an apartment which

meets all the following three conditions, namely- (a) part of supply of construction which has

time of supply on or before the 31^st March, 2019 and (b) at least one instalment has been

credited to the bank account of the registered person on or before the 31^st 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 31^st 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 1^st 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 serial number 3, as the case may be, having carpet area not exceeding 60 square meter

in metropolitan cities or 90 square meter in cities or towns other than metropolitan cities and

for which the gross amount charged is not more than forty five lakhs rupees.

For the purpose of this clause, —

(i) Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida,

Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai

(whole of MMR) with their respective geographical limits prescribed by an order

issued by the Central or State Government in this regard;

(ii) Gross amount shall be the sum total of; -

A. Consideration charged for the services specified at item (i) and (ic) in column

(3) against sl. No. 3 in the Table;

B. Amount charged for the transfer of land or undivided share of land, as the case

may be including by way of lease or sub lease; and

C. Any other amount charged by the promoter from the buyer of the apartment

including preferential location charges, development charges, parking charges,

common facility charges etc.;

(b) an apartment being constructed in an ongoing project under any of the schemes specified in

sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item

(b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi),

against serial number 3 of the Table above, in respect of which the promoter has not exercised

option to pay State tax on construction of apartments at the rates as specified for item (ie) or

(if) against serial number 3, as the case may be.”

(xvii) the term “promoter” shall have the same meaning as assigned to it in in clause (zk) of

section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(xviii) 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);

(xix) 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.

(xx) the term “ongoing project” shall mean a project which meets all the following conditions,

namely:—

(a) commencement certificate in respect of the project, where required to be issued by the

competent authority, has been issued on or before 31^st March, 2019, and it is certified

by any of the following that construction of the project has started on or before 31^st

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 31^st

March, 2019;

taken place on or before the 31^st March, 2019;

(d) apartments being constructed under the project have been, partly or wholly, booked

on or before the 31^st 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 31^st March, 2019, if the earthwork for

site preparation for the project has been completed and excavation for foundation has started

on or before the 31^st March, 2019.

(xxi) "commencement certificate" means the commencement certificate or the building permit

or the construction permit, by whatever name called issued by the competent authority to allow

or permit the promoter to begin development works on an immovable property, as per the

sanctioned plan;

(xxii) "development works" means the external development works and internal development

works on immovable property;

(xxiii) "external development works" includes roads and road systems landscaping, water

supply, seweage and drainage systems, electricity supply transformer, sub-station, solid waste

management and disposal or any other work which may have to be executed in the periphery of,

or outside, a project for its benefit, as may be provided under the local laws;

(xxiv) "internal development works" means roads, footpaths, water supply, sewers, drains,

parks, tree planting, street lighting, provision for community buildings and for treatment and

disposal of sewage and sullage water, solid waste management and disposal, water

conservation, energy management, fire protection and fire safety requirements, social

infrastructure such as educational health and other public amenities or any other work in a

project for its benefit, as per sanctioned plans;

(xxv) the term "competent authority” as mentioned in definition of “commencement certificate”

and “residential apartment” , means the local authority or any authority created or established

under any law for the time being in force by the Central Government or State Government or

Union Territory Government, which exercises authority over land under its jurisdiction, and has

powers to give permission for development of such immovable property;

(xxvi) The term “carpet area” shall have the same meaning assigned to it in in clause (k) of

Section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(xxvii) the term “Real Estate Regulatory Authority” shall mean the Authority established under

sub- section (1) of section 20 (1) of the Real Estate (Regulation and Development) Act, 2016

(No. 16 of 2016) by the Central Government or State Government;

(xxviii) “project which commences on or after 1^st April, 2019” 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 1^st day of April, 2019.

[No. 11266 – FIN-CT1-TAX-0043/2017/FIN.]

By Order of the Governor

SAUMYAJIT ROUT

Deputy Secretary to the Government

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 1^st

April, 2019, shall be calculated project wise for all projects which commence on or after 1^st April,

2019 or ongoing projects in respect of which the promoter has not exercised option to pay State 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, before the due date for furnishing of the return for the

month of September following the end of financial year 2018-19, in the following manner:

1. Where % completion as on 31^st March, 2019 is not zero or where there is inventory in stock

(a) Input tax credit on inputs and input services attributable to construction of residential portion in

a REP, which has time of supply on or after 1^st April, 2019, may be denoted as Tx. Tx shall be

calculated as under:

Tx=T-Te

Where,

(i)

T is the total ITC availed (utilized or not) on inputs and input services used in

construction of the REP from 1^st July, 2017 to 31^st March, 2019 including transitional

credit taken on 1^st July, 2017;

(ii)

Te is the eligible ITC attributable to (a) construction of commercial portion and (b)

construction of residential portion, in the REP which has time of supply on or before 31^st

March, 2019;

(b)

Te 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 =T * (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 31^st March, 2019 and which shall be calculated as under,

Tr= T* F1 * F2 * F3* F4

Where, -

F1=

Carpet area of residential apartments in REP

Total carpet area of commercial and residential apartments in the REP

Total carpet area of residential apartment booked on or before 31^st March,

2019

F2 =

Total carpet area of the residential apartment in REP

Such Value of supply of construction of residential apartments booked on or

before 31^st March, 2019 which has time of supply on or before 31^st March,

2019

F3 =

Total value of supply of construction of residential apartments booked on or

before 31^st March, 2019

(F3 is to account for percentage invoicing of booked residential apartments)

F4=

% Completion of construction as on 31^st 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 31^st 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 (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

Tr = (T- T1)* F1 * F2 * F3* F4

(d)

The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of central tax,

State tax, Union territory tax and integrated tax.

(e)

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

furnished in FORM GST ITC- 03.

Explanation: The registered person may file an application in FORM GST DRC- 20, seeking

extension of time for the payment of taxes or any amount due or for allowing payment of such taxes

or amount in installments in accordance with the provisions of section 80. The commissioner may

issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment

and/or to pay the amount in such monthly installments, not exceeding twenty-four, as he may deem

fit.

(f)

Where Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC on goods

and services received on or after 1^st April, 2019 for construction of residential portion in the REP,

for which he shall not otherwise be eligible, to the extent of difference between Te and T.

(g)

The registered person may calculate Tc and utilize credit to the extent of Tc for payment of

tax on commercial apartments, till the complete accounting of Tx is carried out and submitted.

(h)

Where percentage completion is zero but ITC has been availed on goods and services

received for the project on or prior to 31^st March, 2019, input tax credit attributable to construction

of residential portion which has time of supply on or after 1^st April, 2019, shall be calculated and

the amount equal to Tx shall be paid or taken credit of, as the case may be, as prescribed above,

with the modification that percentage completion for calculation of F4 shall be taken as the

percentage completion which, as 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), can be achieved with the input services received

and inputs in stock as on 31^st March, 2019.

2. Where % completion as on 31st March, 2019 is zero but invoicing has been done having

time of supply before 31st March, 2019, and no input services or inputs have been received

as on 31st March, 2019, “Te” shall be calculated as follows: -

(a)

Input tax credit on inputs and input services attributable to construction of residential

portion in a REP, which has time of supply on or before 31^st March, 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 31^st 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 OGST 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

1^st 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.

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 per cent. points;

(ii)

where the value of invoices issued on or prior to 31^st March, 2019 exceeds the consideration

actually received on or prior to 31^st 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 beactual consideration received plus 25 per cent. of the actual

consideration received; and

(iii)

where, the value of procurement of inputs and input services prior to 1^st April, 2019

exceeds the value of actual consumption of the inputs and input services used in the

percentage of construction completed as on 31^st March, 2019 by more than 25 percent. of

value of actual consumption of inputs and input services, the jurisdictional commissioner or

any other officer authorized in this regard may fix the Te based on actual per unit

consumption of inputs and input services based on the documents duly certified by a

chartered accountant or cost accountant submitted by the promoter in this regard, applying

the accepted principles of accounting.

Illustration 1:

No. of apartments in the project

100

units

No. of residential apartments in the project

units

Carpet area of the residential apartment

sqm

Total carpet area of the residential apartments

C2 * C3

5250

sqm

value of each residential apartment

0.60

crore

Total value of the residential apartments

C2 * C5

45.00

crore

No. of commercial apartments in the project

units

Carpet area of the commercial apartment

sqm

Total carpet area of the commercial apartments

C7 * C8

750

sqm

Total carpet area of the project (Resi + Com)

C4 + C9

6000

sqm

Percentage completion as on 31.03.2019 [as declared to RERA or determined

by chertered engineer]

20%

No of residential apartments booked before transition

units

Total carpet area of the residential apartments booked before transition

C12 * C3

2800

sqm

Value of booked residential apartments

C5 * C12

crore

Percentage invoicing of booked residential apartments on or before

31.03.2019

20%

Total value of supply of residential apartments having t.o.s. prior to transition

C14 * C15

4.8

crore

ITC to be reversed on transition, Tx= T- Te

Eligible ITC (Te)= Tc + Tr

T (*see notes below)

crore

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

Tr= T x F1 x F2 x F3 x F4

C4 / C10

0.875

C13 / C4

0.533

C16 / C14

0.200

1/ C11

Tr= T x F1 x F2 x F3 x F4

C19 * C22 * C23 * C24 * C25

0.467

crore

Eligible ITC (Te)=Tc + Tr

C26 + C20

0.592

crore

ITC to be reversed on transition, Tx= T- Te

C19 - C27

0.408

crore

Details of a REP (Res + Com)

Sl. No

* 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 under section 140 of CGST Act' as value of T.

Illustration 2:

No. of apartments in the project

100

units

No. of residential apartments in the project

units

Carpet area of the residential apartment

sqm

Total carpet area of the residential apartments

C2 * C3

5250

sqm

value of each residential apartment

0.60

crore

Total value of the residential apartments

C2 * C5

45.00

crore

No. of commercial apartments in the project

units

Carpet area of the commercial apartment

sqm

Total carpet area of the commercial apartments

C7 * C8

750

sqm

Total carpet area of the project (Resi + Com)

C4 + C9

6000

sqm

Percentage completion (Pc) as on 31.03.2019 [as declared to RERA or

determined by chertered engineer]

20%

No of residential apartments booked before transition

units

Total carpet area of the residential apartments booked before transition

C12 * C3

2800

sqm

Value of booked residential apartments

C5 * C12

crore

Percentage invoicing of booked residential apartments on or before 31.03.2019

60%

Total value of supply of residential apartments having t.o.s. prior to transition

C14 * C15

14.4

crore

ITC to be reversed on transition, Tx= T- Te

Eligible ITC (Te)= Tc + Tr

T (*see notes below)

crore

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

Tr= T x F1 x F2 x F3 x F4

C4 / C10

0.875

C13 / C4

0.533

C16 / C14

0.600

1/ C11

Tr= T x F1 x F2 x F3 x F4

C19 * C22 * C23 * C24 * C25

1.400

crore

Eligible ITC (Te)=Tc + Tr

C26 + C20

1.525

crore

ITC to be reversed/ taken on transition, Tx= T- Te

C19 - C27

-0.525

crore

Tx after application of cap on % invoicing vis-a-vis Pc

% completion

20%

% invoicing

60%

% invoicing after application of cap(Pc + 25%)

C11+25%

45%

Total value of supply of residential apartments having t.o.s. prior to transition

C14*C32

10.80

crore

F3 after application of cap

C33/C14

0.45

Tr= T x F1 x F2 x F3 x F4 (after application of cap)

C19 * C22 * C23 * C34 * C25

1.05

crore

Eligible ITC (Te)=Tc + Tr (after application of cap)

C20 + C35

1.18

crore

ITC to be reversed / taken on transition, Tx= T- Te (after application of cap)

C19 - C36

-0.18

crore

Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation

% invoicing after application of cap(Pc + 25%)

45%

Total value of supply of residential apartments having t.o.s. prior to transition

C33

10.80

crore

Consideration received

8.00

crore

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

F3 after application of both the caps

C42 / C14

0.42

Tr= T x F1 x F2 x F3 x F4 (after application of both the caps)

C19 * C22 * C23 * C43 * C25

0.97

Eligible ITC (Te)=Tc + Tr (after application of both the caps)

C20 + C44

1.10

ITC to be reversed / taken on transition, Tx= T- Te (after application of both the

caps)

C19 - C45

-0.10

crore

Sl. No

Details of a REP (Res + Com)

* 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 under section 140 of CGST Act' as value of T.

Annexure II

Residential Real estate project (RREP)

Input tax credit attributable to construction of residential and commercial portion in a

Residential Real estate project (RREP), which has time of supply on or after 1^st April, 2019, shall be

calculated project wise for all projects which commence on or after 1^st April, 2019 or ongoing

projects in respect of which the promoter has not exercised option to pay State 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, before the due date for furnishing of the return for the month of

September following the end of financial year 2018-19, in the following manner:

1. Where % completion as on 31^st March, 2019 is not zero or where there is inventory in stock

(a)

Input tax credit on inputs and input services attributable to construction of residential and

commercial portion in an RREP, which has time of supply on or after 1^st April, 2019, may be

denoted as Tx. Tx shall be calculated as under:

Tx=T-Te

Where,

(i)

T is the total ITC availed (utilized or not) on inputs and input services used in

construction of the RREP from 1^st July, 2017 to 31^st March, 2019 including transitional

credit taken on 1^st July, 2017;

(ii)

Te is the eligible ITC attributable to construction of commercial portion and construction

of residential portion, in the RREP which has time of supply on or before 31^st March,

2019;

(b)

Te shall be calculated as under:

Te= T* F1 * F2 * F3* F4

Where, -

F1=

Carpet area of residential and commercial apartments in the RREP

Total carpet areaofapartments in the RREP

(In case of a Residential Real Estate Project, value of “F1” shall be 1.)

Total carpet area of residential and commercial apartment booked on or

before 31^st March, 2019

F2=

Total carpet area of the residential and commercial apartment in the RREP

Such value of supply of construction of residential and commercial

apartments booked on or before 31^st March, 2019 which has time of supply

on or before 31^st March, 2019

F3=

Total value of supply of construction of residential and commercial

apartments booked on or before 31^st March, 2019

(F3 is to account for percentage invoicing of booked residential apartments)

F4=

% Completion of construction as on 31^st 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 31^st 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

furnished in FORM GST ITC- 03.

Explanation: The registered person may file an application in FORM GST DRC- 20, seeking

extension of time for the payment of taxes or any amount due or for allowing payment of such taxes

or amount in installments in accordance with the provisions of section 80. The commissioner may

issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment

and/or to pay the amount in such monthly installments, not exceeding twenty-four, as he may deem

fit.

(e)

Where, Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC on goods

and services received on or after 1^st April, 2019 for construction of the RREP, for which he shall not

otherwise be eligible, to the extent of difference between Te and T.

(f)

Where percentage completion is zero but ITC has been availed on goods and services

received for the project on or prior to 31^st March, 2019, input tax credit attributable to construction

of residential and commercial portion which has time of supply on or after 1^st April, 2019, shall be

calculated and the amount equal to Tx shall be paid or taken credit of, as the case may be, as

prescribed above, with the modification that percentage completion for calculation of F4 shall be

taken as the percentage completion which, as 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), can be achieved with the input services received

and inputs in stock as on 31^st March, 2019.

2. Where % completion as on 31st March, 2019 is zero but invoicing has been done having

time of supply before 31st March, 2019, and no input services or inputs have been received

as on 31st March, 2019, “Te” shall be calculated as follows: -

(a)

Input tax credit on inputs and input services attributable to construction of residential and

commercial portion in an RREP, which has time of supply on or before 31^st March, 2019 may be

denoted as Te which shall be calculated as under,

Te = Tn* F1 * F2 * F3

Where, -

Tn= Tax paid on such inputs and input services on which ITC is available under the OGST Act,

received in 2019-20 for construction of residential and commercial apartments in the RREP.

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

1^st 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 31^st March, 2019 exceeds the consideration

actually received on or prior to 31^st 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 per cent. of the actual

consideration received; and

(iii)

where, the value of procurement of inputs and input services prior to 1^st April, 2019

exceeds the value of actual consumption of the inputs and input services used in the

percentage of construction completed as on 31^st March, 2019 by more than 25 per cent. of

value of actual consumption of inputs and input services, the jurisdictional commissioner or

any other officer authorized in this regard may fix the Te based on actual per unit

consumption of inputs and input services based on the documents duly certified by a

chartered accountant or cost accountant submitted by the promoter in this regard, applying

the accepted principles of accounting.

Illustration 1:

No. of apartments in the project

100

units

No. of residential apartments in the project

100

units

Carpet area of the residential apartment

sqm

Total carpet area of the residential apartments

C2 * C3

7000

sqm

value of each residential apartment

0.60

crore

Percentage completion as on 31.03.2019 [as declared to RERA or determined by

chertered engineer]

20%

No of apartments booked before transition

units

Total carpet area of the residential apartment booked before transition

C3 * C7

5600

sqm

Value of booked residential apartments

C5 * C7

crore

Percentage invoicing of booked residential apartments on or before 31.03.2019

20%

Total value of supply of residential apartments having t.o.s. prior to transition

C9 * C10

9.6

crore

ITC to be reversed on transition, Tx= T- Te

Eligible ITC (Te)=T x F1 x F2 x F3 x F4)

T (*see notes below)

crore

C8 / C4

0.8

C11 / C9

0.2

1/ C6

Eligible ITC (Te)=T x F1 x F2 x F3 x F4)

C14 * C15 * C16 * C17 * C18

0.8

crore

ITC to be reversed on transition, Tx= T- Te

C14 - C19

0.2

crore

Details of a residential real estate project (RREP)

Sl No

*Note:-

1. The value of T at C14 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 under section 140 of CGST Act' as value of T.

Illustration 2:

No. of apartments in the project

100

units

No. of residential apartments in the project

100

units

Carpet area of the residential apartment

sqm

Total carpet area of the residential apartments

C2 * C3

7000

sqm

value of each residential apartment

0.60

crore

Percentage completion as on 31.03.2019 [as declared to RERA or determined by

chertered engineer]

20%

No of apartments booked before transition

units

Total carpet area of the residential apartment booked before transition

C3 * C7

5600

sqm

Value of booked residential apartments

C5 * C7

crore

Percentage invoicing of booked residential apartments on or before 31.03.2019

60%

Total value of supply of residential apartments having t.o.s. prior to transition

C9 * C10

28.8

crore

ITC to be reversed on transition, Tx= T- Te

Eligible ITC (Te)=T x F1 x F2 x F3 x F4)

T (*see notes below)

crore

C8 / C4

0.8

C11 / C9

0.6

1/ C6

Eligible ITC (Te)=T x F1 x F2 x F3 x F4)

C14 * C15 * C16 * C17 * C18

2.4

crore

ITC to be reversed on transition, Tx= T- Te

C14 - C19

-1.4

crore

Tx after application of cap on % invoicing vis-a-vis Pc

% completion

20%

% invoicing

60%

% invoicing after application of cap(Pc + 25%)

C6 + 25 %

45%

Total value of supply of residential apartments having t.o.s. prior to transition

C9 * C24

21.60

crore

F3 after application of cap

C25/C9

0.45

Te= T x F1 x F2 x F3 x F4 (after application of cap)

C14 * C15 * C16 * C26 * C18

1.80

crore

ITC to be reversed / taken on transition, Tx= T- Te (after application of cap)

C14 - C27

-0.80

crore

Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation

% invoicing after application of cap(Pc + 25%)

45%

Total value of supply of residential apartments having t.o.s. prior to transition

C25

21.60

crore

consideration received

16.00

crore

Total value of supply of residential apartments having t.o.s. prior to transition after

application of cap vis-a-vis consideration received

16 cr + 25% of 16 Cr

20.00

crore

F3 after application of both the caps

C33/C9

0.42

Te= T x F1 x F2 x F3 x F4 (after application of both the caps)

C14 * C15 * C34 * C26 * C18

1.67

ITC to be reversed / taken on transition, Tx= T- Te (after application of both the

caps)

C14 - C35

-0.67

crore

Sl No

Details of a residential real estate project (RREP)

*Note:-

1. The value of T at C14 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 under section 140 of CGST Act' as value of T.

Annexure III

Illustration 1:

A promoter has procured following goods and services [other than capital goods and services by way of

grant of development rights, long term lease of land or FSI] 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)

Sand

Cement

Steel

Bricks

Flooring tiles

Paints

Architect/ designing/ CAD drawing

etc.

Aluminium windows, Ply,

commercial wood

In this example, the promoter has procured 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)

Sand

Cement

Steel

Bricks

Flooring tiles

Paints

Architect/ designing/ CAD drawing

etc.

Aluminium windows, Ply,

commercial wood

In this example, the promoter has procured 80 per cent. of goods and services including cement from a

GST registered person. However, he has procured paints, aluminum windows, ply and commercial wood

etc. from an unregistered supplier. Hence at the end of financial year, the promoter is not required to pay

GST on inputs on reverse charge basis.

Illustration 3:

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

input

goods

and

services

received

during

the

financial year

Whether inputs procured

from registered supplier?

(Y/ N)

Sand

Cement

Steel

Bricks

Flooring tiles

Paints

Architect/ designing/ CAD

drawing etc.

Aluminium windows

Ply, commercial wood

In this example, the promoter has procured 50 per cent. of goods and services from a GST registered

person. However, he has procured sand, cement and aluminum windows, ply and commercial wood etc.

from an unregistered supplier. Thus, value of goods and services procured from registered suppliers

during a financial year falls short of threshold limit of 80 per cent. To fulfill his tax liability on the

shortfall of 30 per cent. from mandatory purchase, the promoter has to pay GST on cement at the

applicable rate on reverse charge basis. After payment of GST on cement, on the remaining shortfall of

15 per cent., the promoter shall pay tax @ 18 per cent. under RCM.

Annexure IV

FORM

(Form for exercising one time option to pay tax on construction of apartments in a project by the

promoters 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, by the 10^th of May, 2019)

Reference No. ___________________

Date ____________

____________________

(To be addressed to the jurisdictional Commissioner)

GSTIN:

RERA registration Number of the Project:

Name of the project, if any:

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:

The number, type and the carpet area of apartments for booking or sale in the project:

Date of receipt of commencement certificate:

Declaration

I hereby exercise the option to pay tax on construction of apartments in the above mentioned

project as under :

shall

pay

tax

construction

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

I understand that this is a one time option, which once exercised, shall not be allowed to be

changed.

I also understand that invoices for supply of the service can be issued during the period from 1^st

April 2019 to 10^th May 2019 before exercising the option, but such invoices shall be in

accordance with the option being exercised herein.

Signature ___________________

Name _______________________

Designation _________________

Place __________________

Date __________________

Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

Ex. Gaz. 2612-173+300