Notification No. 04/2019- Central Tax (Rate)

Service by way of transfer of development rights (herein refer
TDR) or Floor Space Index (FSI) (including additional FSI) on or after 1 st 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 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 )

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 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 percent. of the value in case of
affordable residential apartments and 2.5 percent. 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 central 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.

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, 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).

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 residential apartments in the project);

Provided further that the tax payable in terms of the first proviso shall not exceed 0.5 percent. of the value in case of affordable residential apartments and 2.5 percent. 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 central 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.