TaxTMI 
TaxTMI 
TaxTMI 
Amendment in the Government of Punjab, Department of Excise and Taxation, Notification No. S.O.17/P.A.5/2017/Ss.9, 11, 15 and 16/2017 dated the 30th June, 2017.
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....e, 2017, namely:- AMENDMENT In the said notification, - (i) in the opening paragraph,- (a) after the words, brackets and figure "conferred by sub-section (1)", the words, brackets and figures "sub-section (3) and sub-section (4)" shall respectively be inserted; (b) after the words and figures "sub-section (5) of section 15", for the word "and", the sign "," shall be substituted ; (c) after the word and figure "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 (it) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the enti....
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.... 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 and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Punjab Goods and Services Tax Act, 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; Provi....
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....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 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) (id) Construction of residential apartments other than affordable residential....
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....f 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 9 (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 that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above" sha....
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.... service at the applicable rate but for the rate prescribed herein and the tax actually paid at the rate prescribed herein"; 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."; (c) 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 (iv); sub-item (b), sub-item (c), sub-item(d) and sub-item (da)of item (v); and sub-ite....
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....f any, as prescribed in paragraph 2 above."; (v) in paragraph 4 relating to Explanation, after clause (xii), the following clauses shall be inserted, namely: - "(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 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 optio....
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....eets 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 31st March, 2019; (d) apartments being constructed under the project have been, partly or wholly, booked on or before the 31st March, 2019. ....
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.... 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 be deemed to have come into force on and with effect from 01st day of April, 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 or after 1st April, 2019 or ongoing projects in respect of which the promoter has not exercised option to pay state tax on constr....
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....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 anarchitect 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); Wherein T3T- (T1 + T2) T1 = ITC attributable exclusively to construction of commercial portion in the REP T2 = ITC attributable exclusively to construction o....
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....REP/ total carpet area of commercial and residential apartments in the REP) and 372 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 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₠* F₂ * F¸ Where, - 1 2 Tn= Tax paid on such inputs and input services on whichITCis available under the CGST 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 thedifference between percentage invoicing (p....
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....ply of residential apartments having t.o.s. prior to transition 17 ITC to be reversed on transition, Tx=T-Te 18 Eligible ITC (Te)-Tc + Tr 19 T(*see notes below) 1 crore Te Tx (carpet area of commercial apartments in the REP/ total carpet area 20 C19* (C9/C10) 0.125 crore of commercial and residential apartments in the REP) 21 Tr TxF1 x F2 x F3 x F4 22 F1- 23 F2 24 F3 25 F4 26 Tr TxF1 x F2 x F3 x F4 27 Eligible ITC (Te)-Tc + Tr 28 ITC to be reversed on transition, Tx=T-Te Note:- 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 D 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 CGST Act' as value of T. 374 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) Illustration 2: Details of a REP (Res+ Com) SL No 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 r....
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....sition after application of cap vis-a-vis consideration received 8 cr+25% of 8 Cr 10.00 crore 43 F3 after application of both the caps 44 Tr Tx F1 x F2 x F3 x F4 (after application of both the caps) C42/C14 0.42 C19 C22 C23 C43 C25 0.97 45 Eligible ITC (Te)-Te+ Tr (after application of both the caps) C20+C44 1.10 46 TTC to be reversed / taken on transition, Tx T- Te (after application 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 CGST Act' as value of T. PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 375 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 projectsin re....
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....nd Development) Act, 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 anarchitect 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) The amounts ‘Tx' and 'Te' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. (d) 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 31stMarch, 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 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA)....
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....ge invoicing shall be deemed to be actual consideration received plus 25 per cent. of the actual consideration received; and 378 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) (iii) 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 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 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. Illustration 1: Details of a residential real estate project (RREP) SI No B C D 100 units 1 No. of apartments in the project 2 No. of residential apartments in the project 100 units 70 sqm 3 Carpet area of the residential apartment 4 Total carpet area of the residential apartments C2 C3 7000 sqm 5 value of each residential apartment 0.60 crore Percent....
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....ation of cap(Pc+25%) 25 Total value of supply of residential apartments having t.o.s. prior to transition 26 F3 after application of cap 27 Te-Tx F1 x F2 x F3 x F4 (after application of cap) 28 ITC to be reversed/taken on transition, Tx-T- Te (after application of cap) 1 crore 1 C8/C4 0.8 C11/C9 0.6 1/C6 5 C14 * C15 * C16 * C17 * C18 C14-C19 2.4 crore -1.4 crore 20% 60% C6+25% 45% C9C24 21.60 crore C25/C9 0.45 1.80 crore -0.80 crore C14 C15 C16 C26* C18 C14-C27 29 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 30 % invoicing after application of cap(Pc+25%) 31 Total value of supply of residential apartments having t.o.s. prior to transition 32 consideration received 45% 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 35 Te Tx F1 x F2 x F3 x F4 (after application of both the caps) C33/C9 0.42 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 "Note:- 1. The value of T at C14 h....
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....example, the promoter has procured 80 per cent.of goods and services including cement from a GST registered person. However, he has procured paints, aluminum windows, ply and commercial wood etc. from an unregistered supplier. 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. No. Name of input goods and services Percentage of input goods Whether inputs procured and services received during the financial year from registered supplier? (Y/N) 1 Sand 10 N 2 Cement 15 N 3 Steel 15 Y 4 Bricks 10 Y 382 PUNJAB GOVT. GAZ. (EXTRA), JULY 23, 2019 (SRVN 1, 1941 SAKA) 5 Flooring tiles 10 6 Paints 5 7 Architect/ designing/CAD 10 Y Y Y drawing etc. 8 Aluminium windows 9 Ply, commercial wood 15 10 N N In this example, the promoter has....