TaxTMI 
TaxTMI 
Amendments in the Notification of the Government of Puducherry, Commercial Taxes Secretariat issued vide G.O. Ms. No.11/2017-Puducherry GST (Rate), dated the 29th June, 2017.
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....e, 2017, namely:- (By order of the Lieutenant-Governor) TARSEM KUMAR, I.A.S. Commissioner-cum-Secretary to Government (Finance) ============= Document 1GOVERNMENT OF PUDUCHERRY (Abstract) Commercial Taxes - Puducherry Goods and Services Tax Act, 2017 - Amendment to notification on State tax on services - Notification - Orders - Issued. COMMERCIAL TAXES SECRETARIAT G.O. Ms. No.3/2019-Puducherry GST (Rate) Puducherry, the 31- March, 2019 ORDER: The following notification shall be published in the Official Gazette of the Government of Puducherry. NOTIFICATION In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 9, sub- section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Puducherry Goods and Services Tax Act, 2017 (Act No.6 of 2017), the Lieutenant- Governor, Puducherry, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of Puducherry, Commercial Taxes Secretariat issued vide G.O. Ms. No.11/2017-Puducherry GST (Rate), dat....
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....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) (ib) Construction of commercial apartments (shops, offices, godowns etc.) by a promoter in an 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. 3.75 (Provisions of paragraph 2 of this notification shall apply for valuation of this service) (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 0.75 April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option....
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....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) 3.75 (ii) "landowner- promoter" is a promoter who transfers the land or development rights or FSI to a developer- promoter for construction of apartments and receives constructed apartments 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 fr....
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.... supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received. 3. Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)]. 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; 4 structure or a part thereof, including,- (i) commercial apartments (shops, offices, godowns etc.) by a promoter in a REP other than RREP, (ii) reside....
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.... than 50 5 way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of affordable residential apartments covered by sub-clause (a) of clause (xvi) of paragraph 4 below, in a project which commences on or after 1st April, 2019, or in an ongoing project 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), as the case may be, in the manner prescribed therein, per cent. of the total carpet area of all the apartments in the project; Provided also that for the purpose of determining whether the apartments at the time of supply of the service are affordable residential apartments covered by sub- clause (a) of clause (xvi) of paragraph 4 below or not, value of the apartments shall be the value of similar apartments booked nearest to the date of signing of the contract for supply of the service specified in the entry in column (3) relating to this item; Provided also that in case it finally turns out that the carpet area of the affordable residential apartments booked or sold befo....
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....of the services under sub- section 4 of section 9 of the Puducherry Goods and Services Tax Act, 2017 (Act No.6 of 2017), as prescribed in notification issued vide G.O. Ms. No. 07/ 2019-Puducherry GST (Rate), dated 3) March, 2019, published in the Gazette of Puducherry, Extraordinary, Part-I, No. 75, dated the March, 2019. Explanation. - This entry is to be taken to apply to all services which satisfy the conditions prescribed herein, even though they may be covered by a more specific chapter, section or heading elsewhere in this notification. 9 (iii) in paragraph 2,- (a) for the words, brackets, letters and figures "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 (vi)," the word, brackets, letters and figures" (i) (ia), (ib), (ic), (id), (ie) and (if)" shall be substituted; (b) in the Explanation, after the words "this paragraph" the words "and paragraph 2A below" shall be inserted; (iv) after paragraph 2, the following paragraph shall be inserted, namely, - "2A. Where a registered person transfers development right or FSI....
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....ctive geographical limits prescribed by an order issued by the Central or State Government in this regard; (ii) Gross amount shall be the sum total of; - A. Consideration charged for the services specified at item (i) and (ic) in column (3) against sl. No. 3 in the Table; B. Amount charged for the transfer of land or undivided share of land, as the case may be including by way of lease or sub lease; and C. Any other amount charged by the promoter from the buyer of the apartment including preferential location charges, development charges, parking charges, common facility charges etc. (b) an apartment being constructed in an ongoing project under any of the schemes specified in 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 (vi), against serial number 3 of the Table above, 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) against serial number 3, as the case may be. (xvii) the term "promoter" shall have the same meaning as assign....
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.... (xxii) "development works" means the external development works and internal development works on immovable property; (xxiii) "external development works" includes roads and road systems landscaping, water supply, seweage and drainage systems, electricity supply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local laws; (xxiv) "internal development works" means roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and sullage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as educational health and other public amenities or any other work in a project for its benefit, as per sanctioned plans; (xxv) the term "competent authority" as mentioned in definition of “commencement certificate" and "residential apartment", means the local authority or any authority created or established under any law for the....
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.... following the end of financial year 2018-19, in the following manner: 1. stock Where % completion as on 31st March, 2019 is not zero or where there is inventory in (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 after 1st April, 2019, may be denoted as Tx. Tx shall be calculated as under: (b) Tx=T-Te Where, (i) T is the total ITC availed (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; 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 Tr is the ITC attributable to construction of residential portion in the REP which has time....
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.... 'Te' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. (e) Where, Tx is positive, i.e. TeT, the registered person shall be eligible to take ITC on goods and services received on or after 1st April, 2019 for construction 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 Architec....
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....re than 25 per cent. of consideration actually received; the value of such invoices for the purpose of 15 determination of percentage invoicing shall be deemed to be actual consideration received plus 25 percent. of the actual 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 D 1 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 apart....
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....cial 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 Percentage completion (Pc) as on 31.03.2019 [as declared to RERA or 11 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 Percentage invoicing of booked residential apartments on or before 31.03.2019 60% 16 17 Total value of supply of residential apartments having t.o.s. prior to transition ITC to be reversed on transition, Tx= T-Te C14 * C15 14.4 crore 18 Eligible ITC (Te)= Tc + Tr 19 T(*see notes below) 1 crore 20 Te= 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 TrTx F1 x F2 x F3 x F4 22 F1 23 F2 24 F3 25 F4 26 TrTx 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/....
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.... (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. stock (a) Where % completion as on 31st March, 2019 is not zero or where there is inventory in 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: Where, (b) Tx=T-Te (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; Te shall be calculated as under: Te T* F1 * F2 * F3* F4 Where, - Fâ‚= Carpet area of residential and commercial apartments in the RREP Total carpet area of apartments in the RREP F2= (In case of a Resi....
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.... Act, 1972 (20 of 1972) or a chartered engineer 19 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* Fâ‚ * 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,....
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.... 80 units 5600 sqm 10 Percentage invoicing of booked residential apartments on or before 31.03.2019 11 Total value of supply of residential apartments having t.o.s. prior to transition 12 ITC to be reversed on transition, Tx= T- Te C9C10 48 crore 20% 9.6 crore Eligible ITC (Te)=Tx F1 x F2 x F3 x F4) T (*see notes below) 16 2245679 13 14 15 F1 F2 17 F3 18 F4 19 Eligible ITC (Te)=Tx 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 1/C6 0.2 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. 21 224 Illustration 2: Details of a residential real estate project (RREP) SI No 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 7....
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....gistered 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. 22 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. SI. Name of input goods and Percentage of input goods Whether inputs received No. services and services received from registered supplier? during the financial year Sand 2 Cement 3 Steel 456 Bricks Flooring tiles Paints 7 Architect/ designing/CAD drawing etc. 8 Aluminium windows, Ply, commercial wood (Y/N) 10 Y 15 N 20 Y 15 Y 10 Y 5 Y 10 Y 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, m....