GST rate amendment for real estate: differential tax entries, ITC apportionment and reverse charge obligations for promoters.
Amendment revises State GST rates and conditions for real estate supplies, creating differentiated tax entries for affordable, other residential and commercial apartments, composite works and general construction. It conditions lower-rate eligibility on project status, a one time option for ongoing projects, timing of consideration, and an 80% procurement-from registered suppliers threshold; shortfalls or cement from unregistered suppliers attract reverse charge. Annexures prescribe project wise ITC allocation formulae (Tx = T - Te) using carpet area, percentage completion and invoicing, with reporting, payment and certification rules for promoters.

Input tax attribution rules for real estate projects clarified; project wise reconciliation and reversals required on completion.
Amendments require project-wise calculation and final reconciliation of input tax credit and common credit for construction services by using carpet area ratios (E/F) and specified aggregates (C3, D1, D2, Te, Tc). Excess credit determined on finalisation must be reversed via FORM GSTR-3B or FORM DRC-03 and shortfalls claimed as credit by the September return following the financial year in which the completion certificate is issued or first occupation occurs; interest applies to reversals. Separate formulae address commercial portions and assignment where inputs or capital goods serve multiple projects.

GST treatment for real estate construction clarified: distinct rates, ITC adjustment formulas, reverse charge and one time option for promoters.
Amendments reorganise GST treatment for construction services in REP and RREP by prescribing distinct tax rates for categories of apartments, creating a one time option for promoters of ongoing projects to elect alternative rates, and imposing sourcing and credit conditions including reverse charge on unregistered supplies. Project wise ITC adjustment formulas (Tx and Te) are mandated, using carpet area, percentage completion, percentage invoicing and booking data, with caps where invoicing or payment realisation exceeds completion. Compliance requires electronic project accounts, filing of shortfall calculations, and specified forms for election and ITC reconciliation.

Reverse charge on supplies to promoter: unregistered suppliers' goods (excluding capital goods and cement) taxable to promoter as recipient.
Insertion of entry 452Q subjects supplies of goods (excluding capital goods and cement under chapter heading 2523) by an unregistered person to a promoter to tax payable by the promoter under the reverse charge mechanism as recipient under sub-section (4) of Section 9; the entry defines "promoter", "project", REP and RREP and applies to goods meeting prescribed conditions even if covered elsewhere in the notification.

Input tax credit allocation: project wise reconciliation and mandatory reversal or claim tied to project completion, with prescribed reporting.
Amendments require project wise calculation and reconciliation of input tax credit for supplies covered by clause (b) of paragraph 5 of Schedule II, with formulas for aggregate and final eligible credits, allocation rules where inputs or capital goods serve multiple projects, separate computation for tax components, mandatory reversal or claim procedures through FORM GSTR 3B or FORM GST DRC 03 before the return for the month of September following the financial year in which completion certificate or first occupation occurs, and interest on reversed excesses from the succeeding financial year's April first.

Input tax credit apportionment by area for construction services clarified, allocating credit between taxable and exempt supplies.
The Order clarifies that for services covered by clause (b) of paragraph 5 of Schedule II, the credit attributable to taxable supplies, including zero rated and exempt supplies, must be determined on the basis of the area of the construction of the complex, building, civil structure or a part thereof which is taxable and the area which is exempt, aligning apportionment with the taxable versus exempt area.

GST exemption for TDR and FSI transfers allows project-level relief while imposing reverse charge on unbooked residential units.
The notification amends State GST rules to exempt GST on transfer of development rights (TDR)/FSI and on upfront lease premiums used for construction of residential apartments, with the exemption apportioned by carpet area. Promoters must pay tax on a reverse charge basis for proportions attributable to un-booked residential apartments on completion certificate issuance or first occupation, subject to prescribed caps. Deemed valuation rules equate consideration for TDR/FSI or un-booked apartments to comparable apartment values charged by the promoter near the relevant dates, and defined terms from real estate law are incorporated.

Real estate supply classification clarified: transfer of development rights and long term land leases treated as services to promoters.
The notification classifies transfer of development rights or FSI (including additional FSI) and long term lease of land (30 years or more) with upfront consideration and/or periodic rent, when for construction of a project by a promoter, as services supplied by any person to the promoter; it inserts definitions adopting terms from the Real Estate (Regulation and Development) Act for apartment, promoter, Real Estate Project (REP), Residential Real Estate Project (RREP) and defines floor space index (FSI). The amendments are effective 1 April 2019.

Input tax credit adjustment when opting presumptive taxation under notification; payment causes remaining credit to lapse.
Registered persons who have availed input tax credit and opt to pay tax under this notification must debit an amount from their electronic credit or cash ledger equal to the credit on inputs held in stock, inputs in semi finished or finished goods held in stock, and on capital goods, treating the supply as invoking the consequences of Section 18(4) and the rules thereunder; after this payment any remaining input tax credit in the electronic credit ledger shall lapse. Odisha GST Rules applicable to section 10 taxpayers shall, mutatis mutandis, apply to taxpayers under this notification.

Tax liability on development rights and construction consideration arises on completion or first occupation of the project.
Promoters receiving development rights or FSI, or taking long term land lease with upfront consideration for residential construction on or after 1 April 2019, are the registered persons liable to pay State tax where consideration is in the form of construction services or monetary/upfront payments. The tax liability arises on the earlier of issuance of the project completion certificate or first occupation. Defined terms reference the Real Estate (Regulation and Development) Act, 2016, and covered services are subject to reverse charge as per prior Odisha Finance Department notifications.

Reverse charge liability on promoters for certain construction related supplies received from unregistered suppliers, including cement and capital goods.
Notification under Section 9(4) of the Odisha GST Act requires promoters to pay tax on a reverse charge basis for supplies received from unregistered suppliers where such supplies constitute the shortfall from the minimum mandatory purchases for construction projects, and specifically for cement (Customs chapter 2523) and capital goods supplied for construction of projects taxed at prescribed rates; definitions of promoter, project, REP, RREP and FSI are supplied.

Input tax credit adjustment required when opting for composition; debit from electronic ledgers and remaining credit lapses.
Persons who availed input tax credit and opt to pay tax under the composition notification must pay, by debit to the electronic credit or cash ledger, an amount equivalent to credit on inputs held in stock, inputs in semi finished or finished goods in stock, and on capital goods as if section 18(4) applied; after such payment any balance of input tax credit in the electronic credit ledger shall lapse.

Input tax credit adjustment required when a registered person opts for this notification, with remaining credit lapsing after prescribed payment.
A registered person who has availed input tax credit and opts to pay tax under this notification must debit the electronic credit ledger or electronic cash ledger an amount equal to the input tax credit on inputs held in stock, inputs in semi finished or finished goods held in stock, and on capital goods as if the reversal mechanism applied; after such payment any balance of input tax credit in the electronic credit ledger shall lapse. Tripura SGST Rules, 2017 applicable to composition taxpayers apply mutatis mutandis to persons paying under this notification.

Reverse charge on supplies to promoters for real estate projects: tax liability shifted to promoter for unregistered supplier transactions.
A new Schedule III entry notifies that supplies of goods (excluding capital goods and certain cement) by an unregistered person to a promoter for construction are subject to tax payable by the promoter under the reverse charge mechanism; definitions of promoter, project, REP and RREP are as per the Real Estate (Regulation and Development) Act, 2016, and the entry applies to goods meeting these conditions even if covered elsewhere. The amendment is effective from 1 April 2019.

Reverse charge on supplies by unregistered person to promoter: promoter bears state GST liability for construction-related goods.
Entry 452Q taxes supplies of goods (other than capital goods and specified cement) by an unregistered person to a promoter where the promoter is liable to pay tax under the reverse charge mechanism; it applies to goods for construction of a Real Estate Project or Residential Real Estate Project, and defines "promoter", "project", "Real Estate Project (REP)" and "Residential Real Estate Project (RREP)" for the entry's application.

Reverse charge on construction inputs requires promoters to pay tax on specified shortfall supplies from unregistered suppliers.
Notification under section 9(4) of the Maharashtra GST Act directs that specified registered persons shall pay tax on reverse charge basis as recipients for supplies from unregistered suppliers in the real estate sector, covering: (i) supplies constituting the shortfall from the promoter's minimum purchase obligation for a project, (ii) cement forming part of that shortfall, and (iii) capital goods supplied to a promoter for construction of a project where tax is payable at the prescribed rates; key terms including promoter, project, REP, RREP and FSI are defined.

Reverse charge mechanism: promoters must pay GST as recipients for specified shortfall construction supplies from unregistered sellers.
Notification designates promoter as liable to pay tax under the reverse charge mechanism for specified supplies received from unregistered suppliers: shortfall purchases required of a promoter for construction of a project, cement forming part of that shortfall, and capital goods supplied to a promoter for construction of a project taxed at prescribed rates. It defines promoter, project (REP/RREP), RREP by carpet-area threshold, and FSI, and is effective from 1 April 2019.

Reverse charge liability for promoters arises on completion certificate issuance or first occupation for construction consideration.
Promoters receiving development rights, FSI, or long term leases for residential construction and providing consideration via construction services or upfront payments are notified as registered persons whose state tax liability arises on issuance of the completion certificate or on first occupation, with specified payments and supplies treated as taxable; tax on these services is payable on a reverse charge basis and key terms are defined by reference to the Real Estate (Regulation and Development) Act.

Liability to pay state tax on development rights arises on issuance of completion certificate or first occupation under reverse charge.
Notifies promoters receiving development rights, FSI, or long term leases for residential construction as liable to pay State tax on consideration received in cash, construction services, or upfront lease premiums; liability arises on the earlier of issuance of the completion certificate or first occupation. Definitions reference the Real Estate (Regulation and Development) Act, specify project, REP, RREP and FSI, and confirm tax on the specified services is payable under the State reverse charge mechanism.

Reverse Charge Mechanism expanded to include development rights transfers and long-term land leases for promoter projects.
Amendment inserts two entries bringing services of transfer of development rights or FSI (including additional FSI) and long-term lease of land (30 years or more) where consideration is upfront and/or rent, when supplied for construction of a project, under Reverse Charge Mechanism payable by the promoter. It further defines "apartment", "promoter", "project" (REP and RREP), RREP commercial-area threshold, and "floor space index (FSI)". The notification is effective from 1 April 2019.