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Amendments in the Notification No. KA.NI.-2-842/XI-9(47)/17-U.P. Act-1-2017-Order-(09)-2017 dated 30th June, 2017
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....17-U.P. Act-1-2017-Order-(09)-2017 dated 30th June, 2017, namely:- Amendment In the said notification, - (i) (a) (b) (c) in the opening paragraph, 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; for the word "and" after the words and figures "sub-section (5) of section 15" the symbol "," shall be substituted ; 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 central tax on construction of apartments at 0.75 Provided that the state tax at the rate specified in column (4) shall be paid in cash, that is, by debiting the electronic ca....
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....ger, an amount equivalent to the input tax credit 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 FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments, - on (i) the developer- promoter shall pay tax construction supply of of apartments to the landowner- promoter, and - (ii) such landowner promoter shall be eligible for credit of taxes paid by him to 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 pays tax on the same which is not less than the amount of tax paid by him on construction of such apartments to the developer- promoter. Explanation. - (i) "developer- promoter" i....
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....ut services registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate 3.75 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 the rate of eighteen percent on reverse charge basis and all the provisions of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no 1 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; notwithstanding Provided also that 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 (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 exerci....
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....bove 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. 9 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 with the option to be exercised.; 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 and letters "other than th....
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.... 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 (iv) 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."; (c) (d) 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....
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....) 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 of 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 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 central tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number 3, as ....
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...., 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 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 ....
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....†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 be deemed to have come into force with effect from the 1st day of April, 2019. 11 By Order, Asinha (Alok Sinha) Apar Mukhya Sachiv Annexure I Real estate project (REP) other than Residential Real estate project (RREP) Input tax credit attributable to construction of residential portion in a real 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 d....
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....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) 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); 13 (d) 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, Tr= (T3 + T2)* Fâ‚ * F2 * F3* F4 or Tr= (T- T1)* Fâ‚ * F2 * F3* F4 The amounts 'Tx' and....
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....rvices on which ITC is available under the UPSGST 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, to the 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) 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 percent of consideration actu....
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....2 x F3 x F4 27 Eligible ITC (Te)=Tc + Tr C4/C10 0.875 C13/C4 0.533 C16/C14 1/C11 0.200 5 C19 C22 * C23 * C24 * C25 0.467 crore C26+ C20 C19 - C27 0.592 crore 0.408 crore 28 ITC to be reversed on transition, Tx= T- Te * 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 tonecomnt of project which is later and transitional credit taken under section 140 of UPSGST Act' as value of T. 17 Illustration 2: 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 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 Pe....
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....lication of both the caps) 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 1.7.2017 or commencemnt of project which is later and transitional credit taken under section 140 of UPSGST Act' as value of T. 18 By Order,T, 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 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 20 certified....
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.... 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 21 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. By Order, Arinha (Alok Sinha) Apar Mukhya Sachiv 22 Illustration 1: Details of a residential project (RREP) Sl No A B C D 1 No. of apartments in the project 2 No. of residential apartments in the project 100 units 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 6 Percentage completion as on 01.04.2019 [as declared to RERA or determined by chertered engineer] 20% 7 No of apartments booked before transition 8 Total carpet area of the residential apartment booked before transition 9 Value o....
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.....45 27 Te= T x F1 x F2 x F3 x F4 (after application of cap) C14 * C15* C16 * C26 * C18 1.80 crore 28 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) 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%) 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 cr25% of 16 Cr 20.00 crore 34 F3 after application of both the caps C33/C9 0.42 35 Te= T x F1 x 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 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 comnt of project which is later and transitional credit taken u....
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.... 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 % age of input goods Whether inputs procured No. services and services received from registered supplier? during the financial year 10 1 Sand 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 (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 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 procured from registered suppliers during a financial year falls short of threshold limit of 80 per cent. To fulfill his tax liability on the shortfall of 30 per cent from mandatory purcha....