Amendment to Real Estate In GST

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Key Definitions

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)

1. Residential Apartment: shall mean an apartment intended for residential use as declared to the Real Estate Regulatory Authority or to competent authority • An apartment intended for residential use • As declared to the RERA or to the competent authority
2. Commercial Apartment: An apartment other than a residential apartment

Shall mean

• a residential apartment in a project having carpet area not exceeding • 60 sq.mts in metropolitan cities or
• 90 sq.mts in cities or towns other than metropolitan cities and • for which the gross amount charged is not more than 45 Lakhs rupees.
• Gross Amount shall be the sum total of:
  • Amount charged for Construction services • Amount charged for the transfer of land or undivided share of land, as the case may be including by way of lease or sublease; and
  • 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.
  • an apartment booked on or before 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 the supply of construction of the apartment service has the time of supply on or before the said date; and
    • b) consideration equal to at least one installment 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.

Related Topic:
Download PPT of GST Real Estate Amendments from 01.04.2019

“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) The Development of building or building consisting of apartments -Converting an existing building in to apartments -Development of land into plots or apartments -for the purpose of selling all or some of them.

“Residential Real Estate Project (RREP)”

• shall mean a REP in which the carpet area of the commercial apartments is not more than 15 percent. of the total carpet area of all the apartments in the REP;
• REP where Commercial apartment is <=15% of Total Carpet Area.

“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”

“carpet area”

• shall have the same meaning assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
  • The net usable floor area of an apartment
  • Excludes area covered by external walls, services shafts, exclusive balcony or veranda exclusive open terrace area
  • Includes area covered by internal partition walls

“Real Estate Regulatory Authority”

• shall mean the Authority established under subsection (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

 “project”

• Shall mean a Real Estate Project or a Residential Real Estate Project

 “competent authority”

• 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 the development of such immovable property

“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 immovable property,
• as per the sanctioned plan

Ongoing Project

Means a project which meets ALL the 3 conditions,

1) Commencement certificate received before 31st March 2019  + and it is certified by any of the following that construction started on or before 31st March 2019:•

• an architect registered / a chartered engineer registered;  / a licensed surveyor of the respective local body of the city or town or village or development or planning authority.
• Note: where commencement certificate is not required to be issued by the competent authority, it is certified by any of the authorities specified above

2) Completion certificate has NOT been issued or the First occupation of the project has not taken place on or before the 31st March 2019;

3) Apartments being constructed under the project have been, partly or wholly, booked on or before the 31st March 2019

Promoter– 2(zk) of RERD Act 2016

AS per RERA

• A person who constructs or causes to be constructed • An independent building or building consisting of apartments ———–etc

AS per GST -03/2019

(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.

Development Works

means the external development works and internal development works on immovable property

“external development works”

• includes roads and road systems landscaping, water supply, sewage 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;

“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