TaxTMI 
TaxTMI 
Seeks to amend Notification No. 38/1/2017-Fin(R&C)(11/2017-Rate), dated 30th June, 2017
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....he word “and” after the words and figures “sub-section (5) of section 15” shall be substituted by the symbol “,”; (c) after the word, brackets and figures “section (16)”, the words and figure “and section 148” shall be inserted; (ii) in the Table,- (a) against serial number 3, for item (i), and the entries relating thereto in column (3), (4) and (5), the following items and entries shall be substituted, namely,- TABLE (3) (4) (5) “(i) Construction of affordable residential apartments by a promoter in a Residential Real Estate Project (herein after referred to as RREP) which commences on or after 1st April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to pay State tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, 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. (Provisions of paragraph 2 of this notification shall ....
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....ing additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only; Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person; Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both; Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates....
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....ompletion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 3.75 (ic) Construction of affordable residential apartments by a promoter in a Real Estate Project (herein after referred to as REP) other than RREP, which commences on or after 1st April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option to pay State tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 0.75 (id) Construction of residential apartments other than affordable residential apartments by a promoter in a REP other than a RREP which commences on or after 1st April, 2019 or in an ongoin....
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....ice 6 9 Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay State tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case may be, by the 10th of May, 2019; 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.; (b) against serial number 3,- a. item (ii) and the entries relating thereto in columns (3), (4) and (5) shall be omitted; b. in item (iv) in column (3),- (1) after the figures “2017”, the words, brackets, figures and letters “other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above” shall be inserted; (c) in item (v) in column (3),- (1) after the ....
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....escribed herein and the tax actually paid at the rate prescribed herein”; (e) in item (vi) in column (3), after the figures “2017”, the words, brackets, and figures “other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above” shall be inserted’; (f) in item (xii) in column (3), for the entry, the following entry shall be substituted, namely:- “(xii) Construction services other than (i), (ia), (ib), (ic), (id), (ie), (if), (iii), (iv), (v), (va), (vi), (vii), (viii), (ix), (x) and (xi) above. Explanation.- For the removal of doubt, it is hereby clarified that, supply by way of services specified at items (i), (ia), (ib), (ic), (id), (ie) and (if) in column (3) shall attract State tax prescribed against them in column (4) subject to conditions specified against them in column (5) and shall not be levied at the rate as specified under this entry.”; (c) against serial number 16, in item (ii) in column (3), for the word, brackets and letters “sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (....
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....er, less the value of transfer of land, if any, as prescribed in paragraph 2 above.” (v) in paragraph 4 relating to Explanation, after clause (xii), the following clauses shall be inserted, namely:- “(xiii) an apartment booked on or before the 31st March, 2019 shall mean an apartment which meets all the following three conditions, namely- (a) part of supply of construction of which has time of supply on or before the 31st March, 2019 and (b) at least one instalment has been credited to the bank account of the registered person on or before the 31st March, 2019 and (c) an allotment letter or sale agreement or any other similar document evidencing booking of the apartment has been issued on or before the 31st March, 2019; (xiv) the term “apartment” shall have the same meaning as assigned to it in clause (e) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (xv) the term “project” shall mean a Real Estate Project or a Residential Real Estate Project; (xvi) the term “affordable residential apartment” shall mean, - (a) a residential apartment in a project which commences on or after 1st April, 2019, or in an ongoing pr....
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....partments in the REP. (xx) the term “ongoing project” shall mean a project which meets all the following conditions, namely- (a) commencement certificate in respect of the project, where required to be issued by the competent authority, has been issued on or before 31st March, 2019, and it is certified by any of the following that construction of the project has started on or before 31st March, 2019:- (i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972); or (ii) a chartered engineer registered with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority. (b) where commencement certificate in respect of the project, is not required to be issued by the competent authority, it is certified by any of the authorities specified in sub-clause (a) above that construction of the project has started on or before the 31st March, 2019; (c) completion certificate has not been issued or first occupation of the project has not taken place on or before the 31st March, 2019; (d) apartments being constr....
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.... the Authority established under sub-section (1) of section 20 (1) of the Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016) by the Central Government or State Government; (xxviii) “project which commences on or after 1st April, 2019” shall mean a project other than an ongoing project; (xxix) “Residential apartment” shall mean an apartment intended for residential use as declared to the Real Estate Regulatory Authority or to competent authority; (xxx) “Commercial apartment” shall mean an apartment other than a residential apartment; (xxxi) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built; 2. This notification shall come into force with effect from the 1st day of April, 2019. By order and in the name of the Governor of Goa. Sushama D. Kamat, Under Secretary, Finance (R&C). Porvorim, 29th March, 2019. ============= Document 1SERIES I No. 52 OFFICIAL GAZETTE GOVT. OF GOA (EXTRAORDINARY) 29TH MARCH, 2019 Government or Union Territory Government, which exercises authority over land under its jurisdiction, and has p....
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....ed (utilized or not) on inputs and input services used in construction of the REP from 1st July, 2017 to 31st March, 2019 including transitional credit taken on 1st July, 2017; (ii) Te is the eligible ITC attributable to (a) construction of commercial portion and (b) construction of residential portion, in the REP which has time of supply on or before 31st March, 2019; (b) Te shall be calculated as under: Te=Tc+Tr Where,― Tc is the ITC attributable to construction of commercial portion in the REP, calculated as under: Tc =T* (carpet area of commercial apartments in the REP/total carpet area of commercial and residential apartments in the REP) and 3498 OFFICIAL GAZETTE GOVT. OF GOA SERIES I No. 52 (EXTRAORDINARY) 29TH MARCH, 2019 Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31st March, 2019 and which shall be calculated as under, Tr= T* F1 * F2 * F3* F4 Where, - F1= F2 = Carpet area of residential apartments in REP Total carpet area of commercial and residential apartments in the REP Total carpet area of residential apartment booked on or before 31st March, 2019 Total carpet area of....
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....of residential portion in the REP, for which he shall not otherwise be eligible, to the extent of difference between Te and T. (g) The registered person may calculate Tc and utilize credit to the extent of Tc for payment of tax on commercial apartments, till the complete accounting of Tx is carried out and submitted. (h) Where percentage completion is zero but ITC has been availed on goods and services received for the project on or prior to 31st March, 2019, input tax credit attributable to construction of residential portion which has time of supply on or after 1st April, 2019, shall be calculated and the amount equal to Tx shall be paid or taken credit of, as the case may be, as prescribed above, with the modification that percentage completion for calculation of F4 shall be taken as the percentage completion which, as certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India), can be achieved with the input services received and inputs in stock as on 31st March, 2019. 2. Where % completion as on 31st March, 2019 is zero but....
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....ual consideration received; and (iii) where, the value of procurement of inputs and input services prior to 1st April, 2019 exceeds the value of actual consumption of the inputs and input services used in the percentage of construction completed as on 31st March, 2019 by more than 25 percent. of value of actual consumption of inputs and input services, the jurisdictional commissioner or any other officer authorized in this regard may fix the Te based on actual per unit consumption of inputs and input services based on the documents duly certified by a chartered accountant or cost accountant submitted by the promoter in this regard, applying the accepted principles of accounting. Illustration 1: Details of a REP (Res + Com) Sl. No A B C Ꭰ1 No. of apartments in the project 100 units 2 No. of residential apartments in the project 75 units 3 Carpet area of the residential apartment 70 sqm 4 Total carpet area of the residential apartments C2 * C3 5250 sqm 5 value of each residential apartment 0.60 crore 6 Total value of the residential apartments C2 * C5 45.00 crore 7 No. of commercial apartments in the project 25 units 8 Carpet area o....
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.... (Resi + Com) C4 + C9 6000 sqm 11 Percentage completion (Pc) as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20% 12 No of residential apartments booked before transition 40 units 13 14 Total carpet area of the residential apartments booked before transition Value of booked residential apartments C12 * C3 C5* C12 2800 sqm 24 crore 15 16 17 Percentage invoicing of booked residential apartments on or before 31.03.2019 |Total value of supply of residential apartments having t.o.s. prior to transition ITC to be reversed on transition, Tx= T- Te 60% C14 * C15 14.4 crore 18 Eligible ITC (Te)= Tc + Tr 19 T (*see notes below) 1 crore 20 |Tc= Tx (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) C19 (C9/C10) 0.125 crore 21 |Tr= Tx F1 x F2 x F3 x F4 22 F1 23 F2 24 F3 25 F4 26 Tr= Tx F1 x F2 x F3 x F4 27 Eligible ITC (Te)=Tc + Tr 28 ITC to be reversed/ taken on transition, Tx= T- Te C4/C10 0.875 C13/C4 0.533 C16/C14 1/C11 0.600 5 C19 C22 C23 * C24 * C25 1.400 crore C26+ C20 1.525 crore C19 - C27 -0.525 crore 29 Tx after ap....
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.... has not exercised option to pay State tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number 3, as the case may be, in the prescribed manner, before the due date for furnishing of the return for the month of September following the end of financial year 2018-19, in the following manner: 1. Where % completion as on 31st March, 2019 is not zero or where there is inventory in stock (a) Input tax credit on inputs and input services attributable to construction of residential and commercial portion in an RREP, which has time of supply on or after 1st April, 2019, may be denoted as Tx. Tx shall be calculated as under: Tx=T-Te Where, (i) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the RREP from 1st July, 2017 to 31st March, 2019 including transitional credit taken on 1st July, 2017; (ii) Te is the eligible ITC attributable to construction of commercial portion and construction of residential portion, in the RREP which has time of supply on or before 31st March, 2019; (b) Te shall be calculated as under: Te T* F1 * F2 * F3* F4 Where, - F1= F2= F3= Carpet area of resi....
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....ntage completion for calculation of F4 shall be taken as the percentage completion which, as certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India), can be achieved with the input services received and inputs in stock as on 31st March, 2019. 2. Where % completion as on 31st March, 2019 is zero but invoicing has been done having time of supply before 31st March, 2019, and no input services or inputs have been received as on 31st March, 2019, "Te" shall be calculated as follows:― (a) Input tax credit on inputs and input services attributable to construction of residential and commercial portion in an RREP, which has time of supply on or before 31st March, 2019 may be denoted as Te which shall be calculated as under, Te Tn* F1 * F2 * F3 Where, - Tn= Tax paid on such inputs and input services on which ITC is available under the CGST Act, received in 2019-20 for construction of residential and commercial apartments in the RREP. F1, F2 and F3 shall be the same as in para 1 above (b) The registered person shall be eligib....
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.... on 31.03.2019 [as declared to RERA or determined by 6 chertered engineer] 20% 7 No of apartments booked before transition 8 9 | Total carpet area of the residential apartment booked before transition Value of booked residential apartments C3* C7 80 units 5600 sqm C5 * C7 48 crore 10 Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 11 Total value of supply of residential apartments having t.o.s. prior to transition C9* C10 9.6 crore 12 ITC to be reversed on transition, Tx= T- Te 13 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) 14 T (*see notes below) 15 F1 16 F2 17 F3 18 F4 19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) 20 ITC to be reversed on transition, Tx= T-Te *Note:- 1 crore 1 C8/C4 0.8 C11/C9 0.2 1/C6 5 C14 * C15 * C16 * C17 * C18 C14-C19 0.8 crore 0.2 crore 1. The value of T at C14 has been estimated for illustration based on weighted average tax on inputs. 2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T....
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....C9 0.42 35 |Te= T x F1 x F2 x F3 x F4 (after application of both the caps) C14*C15* C34 * C26 * C18 1.67 36 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) C14 - C35 -0.67 crore *Note:- 1. The value of T at C14 has been estimated for illustration based on weighted average tax on inputs. 2. In actual practice, the registered person shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T. By order and in the name of the Governor of Goa. Sushama D. Kamat, Under Secretary, Finance (R&C). Porvorim, 29th March, 2019. 3506 GOVT. OF GOA 29TH MARCH, 2019 OFFICIAL GAZETTE SERIES I No. 52 (EXTRAORDINARY) Annexure III Illustration 1: A promoter has procured following goods and services [other than capital goods and services by way of grant of development rights, long term lease of land or FSI] for construction of a residential real estate project during a financial year. Sl. No. Name of input goods and services 1 Sand 2 Cement 3 Steel 45 Bricks Flooring tiles 6 Paint....
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....iesel, motor spirit, natural gas], for construction of a residential real estate project during a financial year. Percentage of input goods and services received during the financial year Whether inputs procured from registered supplier? Sl. No. Name of input goods and services 1 Sand 2 Cement 3 Steel 4 Bricks 5 Flooring tiles 6 Paints 7 8 Architect/designing/CAD drawing etc. Aluminium windows 9 Ply, commercial wood (Y/N) 10 N 15 N 15 Y 10 Y 10 Y 5 Y 10 Y 15 10 N N In this example, the promoter has procured 50 per cent. of goods and services from a GST registered person. However, he has procured sand, cement and aluminum windows, ply and commercial wood etc. from an unregistered supplier. Thus, value of goods and services procured from registered suppliers during a financial year falls short of threshold limit of 80 per cent. To fulfill his tax liability on the shortfall of 30 per cent. from mandatory purchase, the promoter has to pay GST on cement at the applicable rate on reverse charge basis. After payment of GST on cement, on the remaining shortfall of 15 per cent., the promoter shall pay tax @ 18 per cent. under RCM. By or....