The decisions taken in 34th GST Council meeting with respect to tax restructuring of Real estate sector has been implemented w.e.f 01st April-2019 vide below notifications :
- A) CBIC has issued exemption list for services relating to real estate sector/ developer/builder vide its notification no.04/2019 IT (Rate), 04/2019 CT (Rate) and 04/2019 UT (Rate) has given exemption to certain services rendered by way of transfer of development rights, floor space index (FSI) services etc. on or after 01st April-2019 by a promoter of a project.
- B) Services notified (supply of development rights, FSI etc.) on which GST to be paid by the promoter under sec.9(3) of CGST Act,2017 i.e under RCM method. This is notified vide notification no.05/2019 IT (Rate), 05/2019 CT (Rate) and 05/2019 UT (Rate)
- C) Classes of persons notified who shall pay GST on the date of issue of completion certificate. The CBIC vide its notification no.06/2019 IT, 06/2019 CT (Rate) and 06/2019 UT (Rate) notified classes of persons in whose case liability to pay GST shall arise on the date of issuance of completion certificate for the projects or on it first occupation, whichever is earlier. This is effective w.e.f.01st April-2019
- D) Certain goods notified (supply of development rights, long term lease of land, FSI, CEMENT etc.) on which GST to be paid by the promoter if it is supplied by unregistered persons under sec.9(4) of CGST Act,2017 i.e under RCM method. This is notified vide notification no.07/2019 IT (Rate), 07/2019 CT (Rate) and 07/2019 UT (Rate)
- E) CBIC vide its notification no 08/2019 IT (Rate), 08/2019 CT (Rate) and 08/2019 UT (Rate) has notified 18% GST shall be paid on any goods (other than Cement & Capital goods) supplied by an unregistered person to the promoter on RCM basis, this is effective from 01st April-2019
- F) CBIC has notified that, input tax credit (ITC) lying in the electronic credit ledger of the eligible person shall lapse and the rule applicable to composition dealers shall apply to service providers opting to pay GST @ 6% as per the new presumptive scheme as mentioned in notification no.02/2019 CT (Rate)
- G) CBIC vide its notification no.03/2019 IT (Rate) has notified rates for real estate sector/ builder for their ongoing projects along with project which would commence on or after 01st April-2019
- H) CBIC vide its order no.04/2019 CT and 03/2019 –UT has clarified that builder or developer shall determine the amount of ITC attributable to taxable & exempt supplies on the basis of area of construction of complex, building, civil structure or part thereof, which is taxable and the area which is exempted.