Real estate GST: specified state tax rates, ITC allocation formulas and reverse charge rules for construction services take effect.
Amends Kerala GST notification to prescribe state tax rates and conditions for construction-related services in REPs and RREPs, distinguishing concessional rates for affordable housing and higher rates for other residential and commercial apartments, and introducing an elective higher-rate option for ongoing projects. It prescribes project-wise methods to compute eligible input tax credit (Te) and reversal/payable amount (Tx) with factor-based formulae, mandates an 80% procurement threshold from registered suppliers (with reverse-charge rules and exceptions), sets reporting/payment procedures and expands definitions to determine applicability and valuation. Effective 1 April 2019.

GST exemption for development rights and FSI: prorated relief for residential construction, with reverse charge on unbooked units capped by category.
The amendment adds GST exemption entries for transfer of development rights/FSI and upfront long term lease amounts used for construction of residential apartments, with exemption apportioned by carpet area of residential apartments relative to total project carpet area. Promoters bear reverse charge tax on the proportion attributable to un booked residential apartments on completion or first occupation, capped at 0.5% for affordable units and 2.5% for other units. Valuation of transferred rights and un booked apartments is deemed equal to similar apartments charged by the promoter nearest the relevant date. Definitions for key terms and project scope are specified.

Reverse charge on development rights and long-term land leases now applies to supplies for construction by promoters
The Kerala SGST notification adds two reverse-charge entries requiring promoters to pay tax where any person supplies (i) transfer of development rights or FSI (including additional FSI) for construction of a project by a promoter, and (ii) long term lease of land (30 years or more) against upfront consideration and/or periodic rent for construction of a project by a promoter. It also inserts definitions for apartment, promoter, project (REP/RREP), REP, RREP (commercial carpet area limit), and FSI. The amendment is effective 1 April 2019.

Tax liability on development rights and FSI arises on completion certificate or first occupation, with reverse charge applicable.
Notification designates promoters who receive development rights/FSI or long term land leases in exchange for construction services, cash or upfront lease premium as registered persons for state GST; it provides that state tax on consideration payable or paid in the form of construction service, monetary consideration, or upfront lease amount shall arise on the earlier of issuance of a completion certificate or first occupation, adopts RERA definitions for key terms and confirms that tax on the covered services is payable under the reverse charge mechanism.

Reverse charge on supplies to promoters under GST applies where unregistered suppliers supply specified goods to project promoters.
The amendment inserts entry 452 into Schedule III treating intra state supplies of goods (excluding capital goods and cement under chapter heading 2523) by an unregistered person to a promoter as taxable where the promoter is liable to pay tax under the reverse charge mechanism; definitions of "promoter", "project", REP and RREP are prescribed and the entry applies to goods meeting these conditions even if covered by a more specific tariff heading.

Reverse charge mechanism requires promoters to pay tax on specified real estate supplies from unregistered suppliers.
Registered promoters are required to pay tax under the reverse charge mechanism for specified goods and services received from unregistered suppliers that constitute the shortfall from the minimum value of inputs a promoter must purchase for construction of a project; this includes specified supplies identified in the earlier notification, cement under the relevant tariff heading when forming such shortfall, and capital goods supplied to promoters where tax is payable at the prescribed rate, with defined terms for promoter, project, and FSI and application of Kerala SGST provisions to the recipient as the person liable.

Input tax credit allocation by construction area clarified; credit apportioned between taxable, zero rated and exempt supplies.
Allocation of input tax credit for services under item (b) of para 5, Schedule II, is to be determined by apportioning credit between taxable (including zero rated) and exempt supplies on the basis of the area of the complex, building or civil structure (or part thereof) that is taxable versus that which is exempt.

Delegation of Appellate Authority under Assam GST: specified officers authorised to hear appeals from zonal adjudicators across Assam.
Delegation of Appellate Authority under the Assam Goods and Services Tax Act, 2017, designates specified state tax officers to function as Appellate Authorities for appeals from orders or decisions passed by subordinate adjudicating officers, mapping each class of adjudicating authority to particular appellate officers with specified headquarters and territorial jurisdictions organized by zones and units to align appellate competence with administrative boundaries.

Input tax credit apportionment based on taxable versus exempt construction area governs allocation for GST credit.
Clarifies that for services covered by the Schedule II construction provision, the amount of input tax credit attributable to taxable supplies, including zero-rated and exempt supplies, is to be determined by reference to the area of the complex, building, civil structure or part thereof that is taxable versus that which is exempt.

Input tax credit apportionment based on taxable versus exempt construction area, determining credit for construction-related services.
For services under clause (b) of paragraph 5 of Schedule II, the portion of input tax credit attributable to taxable, zero rated and exempt supplies shall be determined by reference to the area of the complex, building, civil structure or part thereof that is taxable versus the area that is exempt.

Kerala GST amendments clarify input tax apportionment and reporting for real estate projects; revise forms and credit utilization.
The amendment prescribes project-specific methods for computing and finalising input tax credit for construction of apartments under clause (b) of paragraph 5 of Schedule II, using carpet-area ratios (E/F), special zero-value treatment during construction, allocation rules for common inputs and capital goods, separate computation for tax heads (C3, D1, D2, Te, Tc), reversal or claim of differences via FORM GSTR-3B or FORM GST DRC-03 by the September return following completion/first occupation, and new utilization order and revised assessment/notice/form procedures.

Tripura GST rules amend ITC apportionment for real estate projects, prescribe E/F carpet area method and revised forms.
The amendment revises Tripura SGST Rules to clarify that value of assets includes all business assets irrespective of ITC availed, and to prescribe project wise calculations and finalisation of input tax credit for construction services under Schedule II(b). It mandates E/F carpet area methodology, formulas for aggregate and final common credits (including C3 and Te computations), transitional treatment for projects affected by the 1 April 2019 rate change, reversal or claiming mechanisms with September deadlines and interest, assignment of credits where inputs/capital goods serve multiple projects, and exceptions for certain transitioned RREPs. It also prescribes ITC utilisation order and substitutes multiple assessment, demand and rectification forms with electronic summary/upload requirements.

Uncertainty over income tax treatments: Ind AS adds guidance on recognition, measurement and transition effects for tax uncertainties.
Notification amends multiple Ind ASs effective 1 April 2019 to incorporate Annual Improvements to Ind AS (2018) and related amendments: Ind AS 101 allows an election on application of Appendix C (Uncertainty over Income Tax Treatments) for comparative information; Ind AS 103 clarifies remeasurement of previously held interests on acquiring control in joint operations; Ind AS 109 adds Prepayment Features with Negative Compensation and detailed transition, designation and disclosure rules; Ind AS 12 adds Appendix C prescribing recognition, measurement, assumptions, methods and transition for uncertain tax treatments; Ind AS 19, 23 and 28 receive targeted measurement and transition clarifications.

Leases: Ind AS 116 requires recognition of right-of-use assets and lease liabilities, with transition and disclosure rules.
Amendments introduce Ind AS 116, requiring lessees to recognise right-of-use assets and lease liabilities, set initial and subsequent measurement and presentation rules, permit exemptions for short-term and low-value leases, provide practical expedients on transition (full retrospective or modified retrospective recognising cumulative effect at initial application), and make consequential amendments across multiple Ind ASs to align definitions, measurement, impairment and disclosure requirements with the new lease accounting model.

Composition scheme: taxpayers who availed input tax credit must reverse equivalent credits when opting in, with remaining credit lapsing.
Taxpayers who availed input tax credit and opt for the composition notification must pay, via debit to the electronic credit or cash ledger, an amount equivalent to input tax credit on inputs in stock, inputs in semi finished or finished goods in stock, and on capital goods, as if the supply attracted applicable input credit reversal provisions; any remaining input tax credit in the electronic credit ledger shall lapse.

Supply by unregistered persons to promoters: promoter-liability under GST applies for construction goods in real estate projects.
Notification inserts a 9% state tax entry for supplies of goods (other than capital goods and cement) by unregistered persons to promoters where the promoter is liable to pay tax as recipient under the Gujarat GST Act; it defines "promoter", "project", REP and RREP and directs that the entry applies to all goods meeting these conditions, effective 1 April 2019.

Reverse charge: promoters must pay GST on supplies from unregistered suppliers for prescribed shortfall and capital goods cases.
Notification under section 9(4) notifies a reverse charge on promoters for supplies received from unregistered suppliers that constitute the shortfall from minimum purchases required for construction, including specified goods and services (excluding certain land lease and development rights services), cement in the relevant tariff heading, and capital goods supplied for construction on which tax is payable at the prescribed rates; definitions of promoter, project, REP, RREP and FSI are adopted from the Real Estate (Regulation and Development) Act.

Promoter liability for tax on development rights and FSI assigned, with tax due at completion or first occupation.
Notification designates promoters as registered persons liable to pay State tax where they receive development rights, FSI or long term lease of land in consideration for construction services or upfront payments; it states tax liability arises on issuance of a completion certificate or on first occupation, and references statutory definitions and the reverse charge mechanism.

Reverse charge mechanism for development rights and long-term land leases makes promoters the taxable recipients for construction supplies.
The amendment makes specified real estate supplies taxable under the reverse charge mechanism, with any person supplying transfer of development rights or FSI (including additional FSI) for construction by a promoter, or supplying long term leases of land (30 years or more) for construction against upfront and/or periodic consideration, and designates the promoter as the recipient liable to tax.

GST exemption for development rights and long term lease premiums, with reverse charge tax on un booked residential units.
The amendment exempts State GST for transfer of development rights/FSI and upfront long term lease payments for construction of residential apartments from 1 April 2019, calculated by apportioning GST payable on those inputs to the residential carpet area share of the project. Promoters must pay tax on the proportion attributable to residential apartments that remain un booked on completion or first occupation on reverse charge basis, subject to statutory caps; liability arises on completion or first occupation. Deemed valuation and defined terms for apartment, promoter, carpet area, REP/RREP and FSI are prescribed.