TaxTMI 
TaxTMI 
CERTAIN AMENDMENTS TO THE NOTIFICATION ISSUED IN G.O.MS.NO.259, REVENUE (CT.II) DEPARTMENT, DATED. 29.06.2017 RELATED TO RATES OF TAX ON SERVICES.
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....fication shall be deemed to have come into force with effect on and from the 1st day of April, 2019. AMENDMENTS In the said notification, - (i) in the opening paragraph, (a) after the word, brackets and figures "conferred by sub-section (1),", the word, brackets and figures "sub-section (3) and sub-section (4)" shall 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 column (3), (4) and (5), the following items and entries shall be substituted, namely, - Dr. D. SAMBASIVA RAO, Special Chief Secretary to Government. ============= Document 1Registered No. HSE-49/2016 No.373 ఆంధà±à°°à°ªà±à°°à°¦à±‡à°¶à± HRA PRADESH à°ªà±à°°à°à±à°¤à±à°µà°‚ O पà¥à¤°à¤¦à¥‡à¤¶ RIGHT TO INFORMATION ఆంధà±à°°à°ªà±à°°à°¦à±‡à°¶à± à....
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....le 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) (ia) Construction of residential apartments other than affordable residential apartments 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) Table (4) 0.75 3.75 (5) Provided that the state tax at the rate specified in column (4) shall be paid in cash, that is....
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....ruction of apartments by developer- promoter to him, provided the landowner- promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer- promoter. Explanation. - (i) "developer- promoter" is a promoter who constructs or converts a building into apartments or develops a plot for sale, (ii) "landowner- promoter" is a promoter who transfers the land or development rights or FSI to a 4 ANDHRA PRADESH GAZETTE EXTRAORDINARY 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) (id) Construction of residential apartments other than affordable residential REP apartments by....
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....and all the provisions of the Andhra Pradesh Goods and Services Tax Act, 2017 ( Act No. 16 of 2017), shall apply to him as if he is the person liable for paying the tax in relation to such supply of cement; (Please refer to the illustrations in annexure III) May 2, 2019] ANDHRA PRADESH GAZETTE EXTRAORDINARY 5 (ie) Construction of an apartment 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, in respect of which the promoter has exercised option to pay state tax on construction of apartments at the rates as specified for this item. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) (if) Construction of a complex, building, civil structure or a part thereof, including,- (i) commercial apartments (shops, offices, godowns etc.) by a promoter in a REP other than RREP, (ii) residential apartments in an ongoing project, other than affordable residential apartments, in respect of ....
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.... (id) and (ie) 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service). (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 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; (d). after item (V) and entries relating thereto in column (3), (4) and (5), the following items and entries shall be inserted, namely, - (3) (4) (va) Composite supply of works contract as 6 defined in clause (119) of section 2 of the Andhra Pradesh Goods and Services Tax Act, 2017, other than that covered by items (i), ....
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....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 (vi)", the word, brackets figures and letters" (i) (ia), (ib), (ic), (id), (ie)and (if)" shall be substituted; (d) after serial number 38 in column (1) and the entries relating thereto in column (2), (3), (4) and (5) the following serial number and entries shall be inserted, namely: - (2) Chapter (1) "39. 99 (3) S....
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....truction of which has time of supply on or before the 31st March, 2019and (b) at least one instalment has been credited to the bank account of the registered person on or before the 31st March, 2019and (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 (Act No. 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 project in respect of which the promoter has not exercised option in the prescribed form 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, having carpet area not exceeding 60 square meter in metropolitan cities or 90 square meter in cities or towns other than metropolitan cities and for whic....
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....s 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 (Act No. 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 constructed under the project have been, partly or wholly, booked on or before the 31st March, 2019. Explanation.-For the purpose of sub-clause (a) and (b) above, construction of a project shall be considered to have started on or before the 31st March, 2019, if the earthwork for site preparation fo....
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.... 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; 12 ANDHRA PRADESH GAZETTE EXTRAORDINARY Annexure I Real estate project (REP) other than Residential Real estate project (RREP) [Part-I Input tax credit attributable to construction of residential portion in areal estate project (REP) other than residential real estate project (RREP), which has time of supply on or after 1st April, 2019, shall be calculated project wise for all projects which commence on or after 1st April, 2019or ongoing projects 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, in the prescribed manner, before the due date....
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....nd 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 anarchitect 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, calculated as under: Tc =T3 (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP); Wherein T3T (T1 + T2) T1 = ITC attributable exclusively to construction of commercial portion in the REP T2 = ITC attributable exclusively to construction of residential portion in the REP 14 ANDHRA PRADESH GAZETTE EXTRAORDINARY [Part-I and Tr is the ITC attributable to construction of residential portion in the REP which has time of ....
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.... 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 = Tn* Fâ‚ * F2 * F3 Where, - Tn= Tax paid on such inputs and input services on whichITCis available under the CGST Act, received in 2019-20 for construction of REP 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 portion in the REP, for which he shall not otherwise be eligible, tothe 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 integrated tax. 3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be determined in the following situations as under: (i) (!!) wherepercentage invoicingis more than the percentage completion andthedifference between percentage invoicing (per cent. points) and the percentage completion(per cent. points) of construction is more than 25 percent. points; the value of percentage invoici....
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.... transition, Tx= T- Te 4.8 crore 18 Eligible ITC (Te)= Tc + Tr 19 T (*see notes below) 1 crore 20 Tc= T x (carpet area of commercial apartments in the REP/ total carpet (C9/C10) area 0.125 crore of commercial and residential apartments in the REP) 21 Tr= Tx F1 x F2 x F3 x F4 22 F1 23 F2 24 F3 25 F4 26 Tr= T x F1 x F2 x F3 x F4 27 Eligible ITC (Te)=Tc + Tr 28 ITC to be reversed on transition. Tx= T- Te *Note:- C4/C10 0.875 C13/C4 0.533 C16/ C14 0.200 1/ C11 5 * C19 C22 C23* C24 * C250.467 crore C26+ C20 C19 C27 0.592 crore 0.408 crore [Part-I 1. The value of T at C19 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 01.07.2017 or Commencement of project which is later and transitional credit taken under section 140 of APGST Act' as value of T. May 2, 2019] Illustration 2: ANDHRA PRADESH GAZETTE EXTRAORDINARY Details of a REP (Res+ Com SI. 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 resid....
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....alue of supply of residential apartments having t.o.s. prior to transition Consideration received C33 10.80 Ñтоте 8.00 crore 42 Total value of supply of residential apartments having t.o.s. prior to transition after application of cap vis-a-vis consideration received 8 cr25% of 8 Cr 10.00 crore 43 F3 after application of both the caps C42/C14 0.42 45 46 44 Tr= Tx F1 x F2 x F3 x F4 (after application of both the caps) Eligible ITC (Te)=Tc + Tr (after application of both the caps) ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) C19 C22 C23 * C43 * C25 0.97 C20+ C44 1.10 crore C19-C45 -0.10 *Note:- 1. The value of T at C19 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 17 2017 or commencemnt of project which is later and transitional credit taken under section 140 of APGST Act' as value of T. 17 Annexure II Residential Real estate project (RREP) Input tax credit attributable to construction of residential and commercial portion in a Residen....
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.... 2, 2019] ANDHRA PRADESH GAZETTE EXTRAORDINARY 19 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 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) The amounts 'Tx' and 'Te' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. (d) 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, 2019for construction of the RREP, for which he shall not otherwise be eligible, to the extent of difference between Te and T. (f) 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 ....
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....ent. points; where the value of invoices issued on or prior to 31st March, 2019exceeds the consideration actually received on or prior to 31st March, 2019by more than 25 per cent. of consideration actually received; the value of such invoices for the purpose of determination of percentage invoicing shall be deemed to be actual consideration received plus 25 per cent. of the actual consideration received; and 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 per cent. 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. May 2, 2019] ANDHRA PRADESH GAZETTE EXTRAORDINARY 21 Illustration 1: SI No 1 No. of apartments in the project 2 N....
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.....o.s. prior to transition 12 ITC to be reversed on transition, Tx= T- Te 60% C9 * C10 28.8 crore 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 1 crore 1 C8/C4 0.8 C11/C9 0.6 1/ C6 5 C14 * C15 * C16 * C17 * C18 2.4 C14-C19 crore -1.4 crore 19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) 20 ITC to be reversed on transition, Tx= T- Te 21 Tx after application of cap on % invoicing vis-a-vis Pc 22 % completion 23 % invoicing 24 % invoicing after application of cap(Pc+25%) 25 Total value of supply of residential apartments having t.o.s. prior to transition 26 F3 after application of cap 27 Te Tx F1 x F2 x F3 x F4 (after application of cap) C14 28 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) 20% 60% C6+25 % 45% C9 * C24 21.60 crore C25/C9 0.45 C15 C16 * C26 * C18 1.80 crore C14-C27 -0.80 crore 29 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 30 % invoicing after application of cap(Pc +25%) 31 32 Total value of supply of residential apartments having t.o.s. prior to transition consideration received C25 45% 21.60 crore 16.00 ....
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...., high speed diesel, motor spirit, natural gas], for construction of a residential real estate project during a financial year. SI. No. Name of input goods and % services age of input Whether goods and services received during the financial year received inputs from registered supplier? (Y/N) 456N 1 Sand 2 IN 3 Cement Steel Bricks 10 15 20 15 Flooring tiles 10 Paints 5 7 Architect/ designing/ CAD 10 drawing etc. 8 Aluminium windows, Ply, 15 commercial wood Y Y Y Y Y N N In this example, the promoter has procured 80 per cent. of goods and services including cement from a GST registered person. However, he has procured paints, aluminum windows, ply and commercial wood etc. from an unregistered supplier. Hence at the end of financial year, the promoter is not required to pay GST on inputs on reverse charge basis. 24 ANDHRA PRADESH GAZETTE EXTRAORDINARY [Part-I Illustration 3: A promoter has procured following 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), e....