TaxTMI 
TaxTMI 
Amendment in Notification No. 19869-FIN-CT1-TAX-0022/2017, dated the 29th June,2017
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....mber,2018 published in the Extraordinary issue No.2467 of the Odisha Gazette, dated the 31st December,2018 bearing S.R.O. No. 498/2018, namely:- In the said notification, - (i) in the opening paragraph, (a) after the word, bracket and figure "conferred by sub-section (1),", the word, brackets and figures "sub-section (3) and sub-section (4)" shall respectively be inserted; (b) the 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 columns (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 central tax on construction of apartments at the rates as specified for item (ie) or (if) b....
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....against such transferred rights and sells such apartments to his buyers independently. Provided also that eighty percent of value of input and input services, [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including 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 Odisha Goods and Services Tax Act, 2017 (Odisha ....
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....espect of which the promoter has not exercised option to pay central 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) 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 central 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 fi....
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....er in a REP other than RREP, (ii) residential apartments in an ongoing project, other than affordable residential apartments, in respect of which the promoter has exercised option to pay central tax on construction of apartments at the rates as specified for this item in the manner prescribed herein, but excluding supply by way of services specified at items (i), (ia), (ib), (ic), (id) and (ie) above 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. Explanation. -For the removal of doubt, it is hereby clarified that, supply by way of services specified at items (i), (ia), (ib), (ic), (id) and (ie) in column (3) shall attract central 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service 9 (b) against serial number 3, - a. item (ii) and the entries relating thereto in columns (3),....
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.... area of all the apartments in the project, the recipient of the service, that is, the promoter shall be liable to pay such amount of tax on reverse charge basis as is equal to the difference between the tax payable on the service at the applicable rate but for the rate prescribed 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....
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....e project from the independent buyers, other than the person transferring the development right or FSI (including additional FSI), nearest to the date on which such development right or FSI (including additional FSI) is transferred to the promoter, 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 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 ....
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....); (xix) the term "Residential Real Estate Project (RREP)" shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments 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 ....
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....e same meaning assigned to it in in clause (k) of Section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (xxvii) the term "Real Estate Regulatory Authority" shall mean 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. [No. 11266 - FIN-CT1-TAX-0043/2017/FIN.] By Order of the Governor SAUMYAJIT ROUT Deputy Secretary to the Government Annexure I Real estate project (REP) other than Residential Real e....
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....supply of construction of residential apartments booked on or before 31st March, 2019 (F3 is to account for percentage invoicing of booked residential apartments) F4= 1 % Completion of construction as on 31st March, 2019 Illustration: where one- fifth (twenty percent) of the construction has been completed, F4 shall be 100 ÷ 20 = 5. Explanation: "% Completion of construction as on 31st March, 2019" shall be the same as declared to the Real Estate Regulatory Authority in terms of section 4 and section 11 of Real Estate (Regulation and Development) Act, 2016 (16 of 2016) and where the same is not required to be declared to the Real Estate Regulatory Authority, it shall be got determined and 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). (c) A registered person shall have the option to calculate 'Te' in the manner prescribed below instead of the manner prescribed in (b) above,- Te shall be calculated as under: Te = Tc + T1 + Tr Where, - Tc is the ITC attributable to construction of commercial portion in the REP, ....
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....e, 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 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 portion in a REP, which has time of supply on or before 31st March, 2019 may be denoted as Te which 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 =Tn* (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) and Tr is the ITC attributable....
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.... 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 of the commercial apartment 30 sqm 9 Total carpet area of the commercial apartments C7 * C8 750 sqm 10 Total carpet area of the project (Resi + Com) C4 + C9 6000 sqm 11 Percentage completion 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 Total carpet area of the residential apartments booked before transition C12 * C3 2800 sqm 14 Value of booked residential apartments C5 * C12 24 crore 15 Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 16 Total value of supply of residential apartments having t.o.s. prior to transition C14 * C15 4.8 crore 17 ITC to be reversed on transition, Tx= T- Te 18 Eligible ITC (Te)= Tc + Tr 19 ....
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....e 21 Tr= T x F1 x F2 x F3 x F4 22 F1 C4 / C10 0.875 23 F2 C13 / C4 0.533 24 F3 C16 / C14 0.600 25 F4 1/ C11 5 26 Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C25 1.400 crore 27 Eligible ITC (Te)=Tc + Tr C26 + C20 1.525 crore 28 ITC to be reversed/ taken on transition, Tx= T- Te C19 - C27 -0.525 crore 29 Tx after application of cap on % invoicing vis-a-vis Pc 30 % completion 20% 31 % invoicing 60% 32 % invoicing after application of cap(Pc + 25%) C11+25% 45% 33 Total value of supply of residential apartments having t.o.s. prior to transition C14*C32 10.80 crore 34 F3 after application of cap C33/C14 0.45 35 Tr= T x F1 x F2 x F3 x F4 (after application of cap) C19 * C22 * C23 * C34 * C25 1.05 crore 36 Eligible ITC (Te)=Tc + Tr (after application of cap) C20 + C35 1.18 crore 37 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) C19 - C36 -0.18 crore 38 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 39 % invoicing after application of cap(Pc + 25%) 45% 40 Total value of supply of residential apartments having t.o.s. prior to transition C33 10.....
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....of supply on or before 31st March, 2019; (b) Te shall be calculated as under: Te= T* F1 * F2 * F3* F4 Where, - F1 = Carpet area of residential and commercial apartments in the RREP Total carpet areaofapartments in the RREP (In case of a Residential Real Estate Project, value of "F1" shall be 1.) F2 = Total carpet area of residential and commercial apartment booked on or before 31st March, 2019 Total carpet area of the residential and commercial apartment in the RREP F3 = Such value of supply of construction of residential and commercial apartments booked on or before 31st March, 2019 which has time of supply on or before 31st March, 2019 Total value of supply of construction of residential and commercial apartments booked on or before 31st March, 2019 (F3 is to account for percentage invoicing of booked residential apartments) F4= 1 % Completion of construction as on 31st March, 2019 Illustration: where one- fifth (twenty percent) of the construction has been completed, F4 shall be 100 ÷ 20 = 5. Explanation: "% Completion of construction as on 31st March, 2019" shall be the same as declared to the Real Estate Regulatory Authority in terms of section 4 a....
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....eived 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 eligible to take ITC on goods and services received on or after 1st April, 2019 for construction of residential or commercial portion in the RREP, for which he shall not otherwise be eligible, to the extent of the amount of Te. (c) The amount 'Te' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integra....
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....aving 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) 1 crore 15 F1 1 16 F2 C8 / C4 0.8 17 F3 C11 / C9 0.2 18 F4 1/ C6 5 19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C18 0.8 crore 20 ITC to be reversed on transition, Tx= T- Te C14 - C19 0.2 crore *Note:- * The value of T at C14 has been estimated for illustration based on weighted average tax on inputs. * 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. Illustration 2: Sl No Details of a residential real estate project (RREP) A B C D 1 No. of apartments in the project 100 units 2 No. of residential apartments in the project 100 units 3 Carpet area of the residential apartment 70 sqm 4 Total carpet area of the residential apartments C2 * C3 7000 sqm 5 value of each residential apartment 0.60 crore 6 Percentage completion as ....
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....r commencemnt of project which is later and transitional credit taken under section 140 of CGST Act' as value of T. 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 Percentage of input goods and services received during the financial year Whether inputs received from registered supplier? (Y/ N) 1 Sand 10 Y 2 Cement 15 N 3 Steel 20 Y 4 Bricks 15 Y 5 Flooring tiles 10 Y 6 Paints 5 Y 7 Architect/ designing/ CAD drawing etc. 10 Y 8 Aluminium windows, Ply, commercial wood 15 Y In this example, the promoter has procured 80 per cent. of goods and services [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], from a GST registered person. However, he has procured cement fro....