TaxTMI 
TaxTMI 
Amendment in Notification No. 11/2017- State Tax (Rate), dated the 29th June, 2017
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....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 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,....
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....ment 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., State tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of nine percent on reverse charge basis and all the provisions of the Jharkhand Goods and Services Tax Act, 2017 (12 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 herei....
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....low, 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 (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. (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....
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....m (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) (5) (va) Composite supply of works contract as defined in clause (119) of section 2 of the Jharkhand Goods and Services Tax Act, 2017, other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above, supplied by 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, 6 Provided that carpet area of the affordable residential apartments as specified ....
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....(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: - (1) (2) (3) (4) (5) "39 Chapter 99 Supply of 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) by an unregistered person to a promoter for construction of a project on which tax is payable by the recipient of the services under sub- section 4 of section 9 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), as prescribed in notification No. 7/ 2019- State Tax (Rate), dated 26th April, 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, for the words, brackets, letters and figures "sub-item ....
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....ities or towns other than metropolitan cities and for which the gross amount charged is not more than forty five lakhs rupees. For the purpose of this clause, - (i) Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their respective 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-i....
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....een completed and excavation for foundation has started on or before the 31st March, 2019. (xxi) "commencement certificate" means the commencement certificate or the building permit or the construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan; (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 re....
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....dential 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 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 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 commer....
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....* (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP); Wherein T3 = T- (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 and Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31.03.2019 and which shall be calculated as under, or Tr= (T3 + T2)* F₠* F2 * F3* F4 Tr= (T- T1)* F₠* F2 * F3* F4 (d) The amounts ‘Tx' and '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 carrie....
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.... 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) (ii) (iii) where percentage invoicing is more than the percentage completion and the difference 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 invoicing shall be deemed to be percentage completion plus 25 percent. points; where the value of invoices issued on or prior to 31st March, 2019 exceeds the consideration actually received on or prior to 31st March, 2019 by more than 25 percent. 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 percent. 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 percent....
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.... shall take 'aggregate of ITC taken as declared in GSTR-3B of tax periods from Commencement of project which is later and transitional credit taken under section 140 of JGST Act' as value of T. 14 Illustration 2: Sl. No Jharkhand Gazette (Extraordinary), Friday, 26th April, 2019 Details of a REP (Res + Com) A B C D 1 No. of apartments in the project 100 units 2 3 No. of residential apartments in the project |Carpet area of the residential apartment 75 units 70 sqm 4 5 |Total carpet area of the residential apartments value of each residential apartment C2 * C3 5250 |sqm 0.60 crore 6 Total value of the residential apartments * 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 (Pc) as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 12 No of residential apartments booked before transition 13 Total carpet area of the residential apartments booked before transition 14 Value of booked re....
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....ake 'aggregate of ITC taken as declared in GSTR-3B of tax periods from dommencement of project which is later and transitional credit taken under section 140 of JGST Act' as value of T. [File.No Va Kar / GST/03/2019] By the order of the Governor of Jharkhand Prashant Kumar, Secretary-cum-Commissioner. Jharkhand Gazette (Extraordinary), Friday, 26th April, 2019 Annexure II Residential Real estate project (RREP) 15 Input tax credit attributable to construction of residential and commercial portion in a 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, 2019 or 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 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)....
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....rkhand Gazette (Extraordinary), Friday, 26th April, 2019 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 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 attributable to construction of residential and commercial 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....
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.... 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. Jharkhand Gazette (Extraordinary), Friday, 26th April, 2019 17 Illustration 1: SI No Details of a residential real estate project (RREP) A B C Ꭰ1 |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 4 |Total carpet area of the residential apartments C2 * C3 5 value of each residential apartment 70 sqm 7000 sqm 0.60 crore Percentage completion as on 31.03.2019 [as declared to RERA or determined by 6 chertered engineer] 7 No of apartments booked before transition 8 Total carpet area of the residential apartment booked before transition 9 Value of booked residential apartments 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 19 * C10 12 IT....
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....o transitiб9 * C24 21.60 crore C25/C9 0.45 C14 * C15 * C16 * C26* 180 crore 28 ITC to be reversed / taken on transition, Tx= T- Te (after application of a¤27 29 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 30% invoicing after application of cap(Pc +25%) -0.80 crore 45% 31 Total value of supply of residential apartments having t.o.s. prior to transitionC25 32 consideration received 21.60 crore 16.00 crore 33 Total value of supply of residential apartments having t.o.s. prior to transition of 16 Cr application of cap vis-a-vis consideration received after 20.00 crore 34 F3 after application of both the caps C33/C9 0.42 36 35 Te= T x F1 x F2 x F3 x F4 (after application of both the caps C14 * C15 * C34 * C26 * â±187 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) -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 fromcomment of project which is later and transitional credit taken under....
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....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. 20 Jharkhand Gazette (Extraordinary), Friday, 26th April, 2019 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), electricity, 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 Percentage of input goods and services received during the financial year 1 Sand 10 2 Cement 15 3 Steel 15 4 Bricks 10 5 Flooring tiles 10 6 Paints 5 7 Architect/ designing/ CAD 10 drawing etc. 8 Aluminium windows 15 9 Ply, commercial wood 10 Whether inputs procured from registered supplier? (Y/N) N N Y Y Y Y Y N N In this example, the promoter has procured 50 per cent. of goods and services from a GST registered perso....