Brief Notes on detailed Analysis on recent notifications issued under GST Law, 2017 continue… dated.18.4.2019
Central Tax Rate Notification under the GST Act, 2017:
- Notification No.2/2019-Central Tax (Rate) – Dated.29.03.2019: This notification states that the rules applicable to the composition scheme shall be applicable for this special rate. As per GST Council recommendation for composition scheme for the supplier of services whose turnover of the previous financial year is up to 50 Lakhs and liable to pay @ 3% CGST and @3% SGST tax rate and not eligible for Input Tax Credit w.e.f.01.04.2019. Thereby the supplier opting for this lower rate should submit CMP-02 before 31.03.2019 to opt-in and stock declaration Input Tax Credit in GST Form ITC-03 should be filled before 30-09-2019.
- Notification No.3/2019 –Central Tax Rate-Dated.29.03.2019: This notification has been issued to prescribe the new rates for the “REAL ESTATE” sector as per below table:
The summary of the same is as followed.
Type of apartment
New Rate of Tax
Comparison Effective rate after 1/3rd deductions
Construction of Affordable residential apartments
8% or 12%
1. Tax should be paid in Cash 2. NO Input Tax Credit available and reported in GSTR-3B at 4D(2), 3.Reverse the credit availed, relevant for future Income 4. 1/3 rd deduction for land value, 5. A promoter includes Developer & Landowner,
Other than affordable Residential apartments of the above category of commercial apartments by a promoter in Residential Real Estate Project (RREP)
(i).80% Registered Procurements if any purchases from unregistered persons liable to pay RCM @18% at the end of Financial Year basis on or before 30’th June return. (ii). Purchases from URD like Cement, Bricks, etc., liable to pay RCM 9 (4) as applicable Rate of GST Tax is compulsory,
Area 60/90 Square Meters in Metro /Non-Metro and Gross Value below Rs.45 Lakhs
- Notification No: 4/2019- Central Tax (Rate) – dated 29th March, 2019: This notification has given to the exemption notification 12/2017 has been amended to include the services provided by the landowner to the developer by way of “Transfer of development rights/ Floor Space Index (FSI) Long Term lease for the residential projects. The above exemption shall be subject to the conditions that all the flats are sold prior to Occupancy Certificate received.
- Notification No: 5/2019-Central Tax (Rate)-dated 29th March 2019: This notification has given to amend notification NO.13/2017(RCM) that to notify the services provided by the landowner to the developer by way of “Transfer of development rights/ Floor Space Index / Long Term lease for the residential projects as specified services liable to tax under reverse charge under Section 9(3) of CGST Act, 2017.
- Notification No.6/2019-Central Tax (Rate) – dated 29th March, 2019: This notification has been issued to specify the time of supply for discharging the liability under reverse charge mechanism (RCM) on “Transfer of development right (TDR)/ Floor Space Index (FSI)/ Long term lease received and construction services provided to landowner on or after 1st April 2019, would be the date of issuance of completion certificate or occupancy certificate whichever is earlier.
- Notification No.7/2019-Central Tax (Rate) – dated.29th March 2019: This notification has been issued to specify that the builder shall be liable to pay tax under reverse charge mechanism (RCM) on the following:
Type of expense
Rate of GST Tax
Input and input services other than cement.
18% as per notification no. 07/2019-Central Tax Rate.
The shortfall to 80%
Applicable rate @28%
All purchases from Unregistered persons. Taxability of cement under RCM on shortfall vs on entire unregistered purchases, between the notification no. 3/2019 and notification 7/2019
All purchases from Unregistered persons
- Notification No.8/2019 – Central Tax (Rate) – dated.29th March 2019: This notification has been issued to prescribe the rate of tax for the shortfall inputs and input services other than cement as @8%.
- Notification No.9/2019 – Central Tax (Rate) – dated.29th March 2019: This notification has been issued to amended to notification no.2/2019-Central tax (Rate) Composition scheme for service providers to specify the credit reversal for the Input Tax Credit (ITC) on inputs and Capital goods as on date of opting for the scheme in accordance with Sec.18 (4) of CGAT Act, 2017. Specify the lapse of the credit balance after the above reversal. Extend the applicability of rules of composition scheme of goods to the special rate (Composition scheme) of services.
Brief Notes on detailed analysis on Circulars under GST to continue——– dt.19.4.2019.
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