Sub: In case of developer, failure to submit Intimation (Annexure IV) to choose option of either 5% or 12%.

[JIGAR SHAH]

Query: As per Notification No 03/2019 dated 29^th Mar 2019 related to Real Estate Projects A developer has to submit Intimation before 20^th May 2019 for declaring which option(5% without ITC or 12% with ITC) they have excised. If the developer has excised the option of 12% with ITC but the Intimation has not been submitted in prescribed format – Annexure-IV. If it is submitted in the current date i.e. 04/01/2020, what are the compliance issues and penalty if any?

[Alkesh Jani]

Sir,

In the said Notification for column No. 5 Sl.No. (ie) is given below :-

"Provided also that where the option is not exercised in Form at annexure IV by the 10th 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 1st April 2019 to 10th May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.;"

Hope this will help.

Thanks

AI Summary

Developer Misses Deadline for Intimation Under Notification 03/2019, Invoices Must Align with Chosen GST Option A developer inquired about compliance issues and potential penalties for failing to submit the required Intimation (Annexure IV) by the deadline of May 10, 2019, as per Notification No 03/2019 concerning GST rates for Real Estate Projects. The developer had chosen the 12% GST rate with Input Tax Credit (ITC) but did not submit the Intimation on time. The response clarified that if the option was not exercised by the deadline, it would be deemed exercised, and invoices issued from April 1, 2019, to May 10, 2019, must align with the chosen option.