TaxTMI 
TaxTMI 
Amendment in the Notification No. F-A-3-32-2017-1-V(41) dated 29th June, 2017
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 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, 25 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 ficate, where requ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....etent 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 apartiments by a promoter in a Real Estate Project (herein after referred to as REP) other than RREP, which commences on cr after 1st April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option to pay 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 of completion received after issuance certificate, where required, by the competent authority or after its first occupation, whichever is earlier. 3.75 0.75 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 FSI transfers development right or (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncluding 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 and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 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 c....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... person shall be paid in the month in which 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 tax on construction of pay state 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 with the option to be exercised.; 398 (41) 398 (42) मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 2019 has been received after....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ale 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 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 which the gross amount charged is not more than forty five lakhs rupees. For the purpose of this clause, - 398 (45) 398 (46) मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) 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 31s March, 2019; मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 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 M....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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; 398 (47) (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 oor area) to the size of the piece of land upon which it is built ; 2. This notification shall deemed to have come into effect from the 1st day of April, 2019. By order and in the name of the Governor of Madhya Pradesh, S. D. RICHHARIYA, Dy. Secy. 398 (48) मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 2019 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tage invoicing of booked residential apartments) 398 (49) 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 (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 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 com....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t 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, मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 2019 398 (51) 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 on or before 31st March, 2019 and which shall be calculated as under, Tr = Tn* F¡ * Fâ‚‚ * F3 Where, - Tn= Tax paid on such inputs and input services on which ITC is available under the SGST 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0 crore 7 No. of commercial apartments in the project 25 units 8 Carpet area of the commercial apartment 30 sam 9 Total carpet area of the commercial apartments C7 * C8 750 sam 10 Total carpet area of the project (Resi+Com) C4C9 6000 sam Percentage completion as on 31.03.2019 [as declared to RERA or determined 11 20% by chertered engineer] 12 No of residential apartments booked before transition 40 units 13 Total carpet area of the residential apartments booked before transition 14 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 16 Total value of supply of residential apartments having t.o.s. prior to transition 17 ITC to be reversed on transition, Tx= T-Te 20% C14*C15 4.8 crore 18 Eligible ITC (Te)= Tc + Tr 19 T (see notes below) 1 crore 20 Tc=Tx (carpet area of commercial apartments in the REP/ total carpet are 19 * (C9/C10) 0.125 orore of commercial and residential apartments in the REP) 21 Tr Tx F1 x F2 x F3 x F4 22 F1 C4/C10 0.875 23 F2 24 F3 25 F4 26 Tr Tx F1 x F2 x F3 x F4 C13/C4 C16/ C14 1/C11 0.533 0.200 5....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 19 (C9/C10) 0.125 crore C4/C10 0.875 C13/C4 0.533 C16/C14 1/C11 0.600 5 C19 C22 C23 * C24* C25 1.400 crore C26+C20 C19-C27 1.525 crore -0.525 crore 20% 60% 32% invoicing after application of cap 45% 33 Total value of supply of residential) tments having 10.80 crore $34 F3 after application 0.45 35 TTXF1 x F2 x F3 x E4 (after application of cap) 19-022 2023 034 C25 1.05 36 Eligible ITC (Te)-Tc + Trafter application of cap) C20+ C35 1.18 crore 37 ITC to be reversed/taken on transition: Ex-T-Te (after application of cap) C19-636- 0.18 crore. 38 Tx after application of cap on % invoicing vis-a-vis Pd and payment realisation 39% invoicing after application of cap(Pc+25%) 40 Total value of supply of residential apartments having to prior to transition C33 45% 10.80 crore: 41. Consideration received 8.00 CFOFE 42: Total value of supply of residential apartments having to.s, prior to transition after application of cap vis-a-vis consideration received 43 F3 after application of both the caps. 44 TTx F1 x F2 x F3 X F4 (after application of both the caps) 8 cr+ 25% of 8 Cr :C42/C14: 10.00 crofe 0.42 C19 C22 C23 C43 C25 0.97 45 Eligi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....F3* F4 Fâ‚= Carpet area of residential and commercial apartments in the RREP Total carpet area of apartments in the RREP Fâ‚‚= (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 मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 2019 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= 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as under, * Te Tn F1 F2 * F3 Where, - Tn= Tax paid on such inputs and input services on which ITC is available under the SGST Act, received in 2019-20 for construction of residential and commercial apartments in the RREP. 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 or commercial portion in the RREP, for which he shall not otherwise be eligible, to the extent of the amount of Te. (c) Sh The amount 'Te' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. . Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be etermined 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 per cent. points; the value of percentage invoicing shall be deemed to be percentage completion plus 25 percent. points; where the valu....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1/C6 5 C14 C15 C16 * C17*C1B 0.8 C14-C19 crore 0.2 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 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of SGST Act' as value of T. 398 (58) Illustration 2: मधà¥à¤¯à¤ªà¥à¤°à¤¦à¥‡à¤¶ राजपतà¥à¤°, दिनांक 17 मई 2019 Details of a residential real estate project (RREP) SI No B 100 units 1 No. of apartments in the project 2 No. of residential apartments in the project 100 units 3 Carpet area of the residential apartment 70 sam 4 Total carpet area of the residential apartments C2 C3 7000 Soin 5 value of each residential apartment 0.60 crore 6 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 7 No of apartments booked before transition 80 units 8 Total carpet area of the residential apartment booked before transition ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....han capital goods and services by way of grant of development rights, long term lease of land or FSI] for construction of a residential real estate project during a financial year. Sl. Name of input goods and Percentage of input Whether inputs received No. services services from registered supplier? goods and received during the (Y/N) financial year 1 Sand 10 Y 2 Cement 15 N 3 Steel 20 Y 4 Bricks 15 Y 5 Flooring tiles 10 Y 6 Paints 5 Y Architect/ designing/ CAD 10 Y drawing etc. Aluminium windows, Ply, 15 Y commercial wood. In this example, the promoter has procured 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 servi....