TaxTMI 
TaxTMI 
Seeks to amend notification No.F.NO.FIN/REV3/GST/1/(Pt-1) “N” , 30th June, 2017
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.... 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 entries relating thereto in column (3), (4) and (5), the following items and entries shall be substituted, namely, - (3) Table (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, by the competent authority or after its first occupation, whichever is earlier. 0.75 Provided that the s....
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....ption 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, 3.75 3.75 0.75 attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that where a registered person (landowner- promoter) who transfers development right or (including additional FSI) to a promoter FSI (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments, - on (i) the developer- promoter shall pay tax supply of construction of apartments to the promoter, and - landowner- (ii) such landowner promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction 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 pa....
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.... 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 3.75 the rate of eighteen percent on reverse charge basis and all the provisions of the Nagaland Goods and Services Tax Act, 2017 (4 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 herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the Nagaland Goods and Services Tax Act, 2017 (4 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) 3 (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-i....
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.... respect of which the promoter has exercised option to pay state 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 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....
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....ent 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 the applicable rate but for the rate prescribed herein and the tax actually paid at the prescribed rate herein"; at 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."; against serial number 16, in item (ii) in column (3), for the word, brac....
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....lopment 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:- 8 "(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 Project or a Residential Real Estate Project; (xvi) the term "affordable residential apartment" shall mean, - (a) a residential apartment in a project which c....
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....n 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 31st March, 2019; (c) completion certificate has not been issued or first occupation of the project has not taken place on or before the 31....
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....atory 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. F.NO.FIN/REV-3/GST/1/08 (Pt-1)(Vol.1) Copy to:- 1/111 Jah (Taliremba) Officer on Special Duty (Finance) Dated: 29th March, 2019 1. The Commissioner & Secretary to Governor of Nagaland, Raj Bhavan, Kohima. 2. The Commissioner & Secretary to Chief Minister, Nagaland, Kohima 3. OSD to CS for information of the Chief Secretary. 4. The P.S. t....
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....artments 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 31st March, 2019 and which shall be calculated as under, * Tr= T F1 F2 * F3* F4 Where, - 13 F2 = F3= F₠= Carpet area of residential apartments in REP Total carpet area of commercial and residential apartments in the REP Total carpet area of residential apartment booked on or before 31st March, 2019 Total carpet area of the residential apartment in REP Such Value of supply of construction of residential 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 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 s....
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.... 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. 15 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 to construction of residential portion in the REP which has time of supply o....
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....e 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 14 13 Total carpet area of the residential apartments booked before transition Value of booked residential apartments C12* C3 2800 sqm C5* C12 24 crore 15 Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 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 4.8 crore 18 Eligible ITC (Te)= Tc + Tr 19 T(*see notes below) 1 crore 21 22 20 22 Tc= Tx (carpe....
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....F2 x F3 x F4 27 Eligible ITC (Te)=Tc + Tr 28 ITC to be reversed/ taken on transition, Tx= T-Te C26+ C20 C19-C27 C4/C10 0.875 C13/C4 0.533 C16/C14 1/C11 0.600 5 C19 C22 C23 * C24 * C25 1.400 crore 1.525 crore -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 TxF1 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 C19-C36 -0.18 crore 37 ITC to be reversed/taken on transition, Tx= T- Te (after application of cap) 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 41 Total value of supply of residential apartments having t.o.s. prior to transition Consideration received C33 10.80 crore 8.00 crore 42 Total value of supply of residential apartments having t.o.s. p....
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.... 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 Residential Real Estate Project, value of "F1" shall be 1.) 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 19 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= % 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 an....
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....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. 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) 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; (ii) 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 be actual consideration receive....
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....l estate project (RREP) Sl 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 5 value of each residential apartment 0.60 crore Percentage completion as on 31.03.2019 [as declared to RERA or determined by 6 20% chertered engineer] 7 No of apartments booked before transition 80 units 8 Total carpet area of the residential apartment booked before transition C3 * C7 5600 sqm 9 Value of booked residential apartments C5 * C7 48 crore 10 Percentage invoicing of booked residential apartments on or before 31.03.2019 60% 11 12 Total value of supply of residential apartments having t.o.s. prior to transition ITC to be reversed on transition, Tx= T-Te C9* C10 28.8 crore 13 Eligible ITC (Te)=Tx F1 x F2 x F3 x F4) 14 T(*see notes below) 15 F1 16 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 1 crore 1 C8/C4 0.8 C11/C9 1/C6 0.6 5 C14 * C15 * C16 * C17 * C18 C14 2.4 crore C19 -1.4 ....
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....ocured 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 from an unregistered supplier. Hence at the end of financial year, the promoter has to pay GST on cement at the applicable rates on reverse charge basis. Illustration 2: 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. Name of input goods and Percentage of input Whether inputs received No. services goods and services from registered supplier? received during the financial year 10 15 20 15 10 1 Sand 2 Cement 3 Steel 4 Bricks 5 Flooring tiles 6 Paints....