TaxTMI 
TaxTMI 
Amendments in the Notification of the Government of Tripura, in the Finance Department, No. 11/2017-State Tax (Rate), dated the 29th June, 2017.
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017), the State Government, 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 Tripura, in the Finance Department, No.11/2017- State Tax (Rate), dated the 29th June, 2017, published in the Tripura Gazette, Extraordinary Issue, vide number 231, dated the 29th June, 2017, namely:- In the said notification, - (i) in the opening paragraph, (a) (b) (c) after the word, brackets and figures "conferred by sub-section (1),", the word, brackets and figures "sub-section (3) and sub-section (4)" shall respectively be inserted; the word "and" after the words and figures "sub-section (5) of section 15" shall be substituted by the symbol ""; 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 e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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) (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 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 as 3.7....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ance 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 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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; 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 4 Tripura Gazette, Extraordinary Issue, March 30, 2019 A. D. (ii) residential apartments in an ongoing project, other than affordable residential apartments, in respect of which the promoter has exercised option to pay state tax on construction of apartments at the rates as specif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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, 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; amount Provided also that in case it finally turns out that the carpet area of the affordable residential apartments booked or sold before or after completion, for which gross actually charged was forty five lakhs rupees or less and the actual carpet area was within the limits prescribed in sub-clause (a) of clause (xvi) of paragraph 4 below, was less than 50 per cent. of the total carpet area of all the 6 Tripura Gazette, Extraordinary Issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../2019- State Tax (Rate), dated 30th March, 2019, published in Tripura Gazette vide No. 738,, dated 30th 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. (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-iteni (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 (including additional FSI) to a promoter against consideration, wholly or partly, in the form of construction of apartments, the value of construction service in respect of such apartments shall be decmed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 locationcharges, 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 assigned to it in in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (xviii) the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....opment 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 time being in force by the Central Government ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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. in stock Where % completion as on 31st March, 2019 is not zero or where there is inventory (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) (ii) 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; 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l 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, Tr= (T3 + T2)* Fâ‚ * F2 * F3* F4 or Tr = (T- T1)* Fâ‚ * F2 * F3* F4 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 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 calculat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....per cent. points) and the percentage completion (per cent. points) of construction is more than 25 per cent. 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 per cent. of consideration actually received; the value of such invoices for the purpose of determination of percentage invoicing shall be deemed to beactual 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. 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 15 Tripura Gazette, Extraordinary Issue, March 30, 201....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 2019 A. D. SL No Details of a REP (Res+ Com) 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 sam 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 07-08 750 sam 10 Total carpet area of the project (Resi+Com) C4+09 6000 sqm " 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 sam 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 to.s. prior to transition ITC to be reversed o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Secretary Government of Tripura Finance Department 17 Tripura Gazette, Extraordinary Issue, March 30, 2019 A. D. Annexure II Residential Real estate project (RREP) 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. in stock Where % completion as on 31st March, 2019 is not zero or where there is inventory (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: Where, (b) (i) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gible, 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 19 Tripura Gazette, Extraordinary Issue, March 30, 2019 A. D. 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: - ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the promoter in this regard, applying the accepted principles of accounting. Illustration 1: 20 Tripura Gazette, Extraordinary Issue, March 30, 2019 A. D. 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 70 sqm 4. Total carpet area of the residential apartments C2 C3 7000 sqm S value of each residential apartment 0.60 crore Percentage completion as on 31.03.2019 [as declared to RERA or determined by 6 chertered engineer] 20% 7 No of apartments booked before transition 80 units 8 Total carpet area of the residential apartment booked before transition 9 Value of booked residential apartments C3 * C7 C5-C7 5600 sqm 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 14 Eligible ITC (Te)-Tx F1 x F2 x F3 x F4) T(*see notes below) 15 56 FL 16 F2 17 F3 18 F4 19 Eligible ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....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%) 45% 31 32 Total value of supply of residential apartments having t.o.s. prior to transition consideration received C25 21.60 crore 16.00 crore 33 Total value of supply of residential apartments having t.o.s. prior to transition after application of cap vis-a-vis consideration received 16 cr+25% of 16 Cr 20.00 Crore 34 F3 after application of both the caps C33/C9 0.42 35 Te Tx Fix 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 Стоге *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. 30 (Nagesh Kumar B, IAS) Joint Secretary Government of Tripura Finance Depar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plier. Hence at the end of financial year, the promoterisnotrequired to pay GST on inputs on reverse charge basis. 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. Sl. Name of input goods and Percentage of input Whether inputs procured goods and services from registered supplier? No. services received during the (Y/N) financial year 1 Sand 10 N 2 Cement 15 N 3 Steel 15 Y 4 Bricks 10 Y 5 Flooring tiles 10 Y 6 Paints 5 Y 7 Architect/ designing/ CAD 10 Y drawing etc. 8 Aluminium windows 15 9 Ply, commercial wood 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 pr....