TaxTMI 
TaxTMI 
Seeks to amend Notification No. .11/2017- State Tax (Rate), dated the 28th June, 2017
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....cotics No. 11/2017- State Tax (Rate), dated the 28th June, 2017, published in the Gazette of Arunachal Pradesh, Extraordinary, No. 184, Vol. XXVI, Naharlagun, Friday, June 30, 2017, vide File No. GST/24/2017, dated the 28th June, 2017, namely:- In the said notification, - (ii) in the opening paragraph, (d) 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; (e) the word "and" after the words and figures "sub-section (5) of section 15" shall be substituted by the symbol ","; (f) 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) "(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 ce....
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....service). (ib) Construction of commercial apartments (shops, offices, godowns etc.) by a 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 central 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 central 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....
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....m, 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 Arunachal Pradesh Goods and Services Tax Act, 2017 (7 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, th....
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....egistered and unregistered supplier and calculate tax payments| on the shortfall at the end of the financial year| and shall submit the same in the prescribed form electronically on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later| than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered 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 pay central 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 t....
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....rtments 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; 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 amount 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 apartments in the project, the recipient 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 at the applicable rate but for the rate prescribed herein and the tax actually paid at the rate prescribed herein"; 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'; I. in item (xii) in column (3), for the entry, the following entry shall be substituted, namely: - ....
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....(ib), (ic), (id), (ie) and (if)" shall be substituted; (d) 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 deemed to be equal to the Total Amount charged for similar apartments in the project from the independent buyers, other than the person transferring the development right or FSI (including additional FSI), nearest to the date on which such development 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: - "(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 suppl....
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....t serial number 3 of the Table above, in respect of which the promoter has not exercised option to pay central 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 term "Real Estate Project (REP)" shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (xix) the term "Residential Real Estate Project (RREP)" shall mean a REP in which the carpet area of the commercial apartments is not more than 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- (d) 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 befor....
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....nfrastructure 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 or State Government or Union Territory Government, which exercises authority over land under its jurisdiction, and has powers to give permission for development of such immovable property; (xxvi) The term "carpet area" shall have the same meaning assigned to it in in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (xxvii) the term "Real Estate Regulatory 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 int....
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....e 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; (b) 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 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= T* Fâ‚ * Fâ‚‚ * F * F Where, - Fâ‚ = 1 Fâ‚‚ = Fâ‚â‚ = 2 3 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 boo....
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....t 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 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 F 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 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: - (a) Input tax credit on inpu....
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....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 certified by a chartered accountant or cost accountant submitted by the promoter in this regard, applying the accepted principles of accounting. Illustration 1: Details a REP (Res + Com) Sl. No. A B C 1. No. of apartments in the project 2. 11. 345678007 3. No. of residential apartments in the project Carpet area of the residential apartment 4. Total carpet area of the residential apartment 5. Value of each residential apartment 6. Total value of each residential apartment 7. No. of commercial apartmetns in the project 8. Carpet area of the Commercial apartment 9. Total carpet area of the Commercial apartment 10. Total carpet area of the project (Resi+Com) C2*C3 100 units 75 units 75 sqm 5250 sqm 0.60 crore C2*C5 C7*C8 C4+C9 12. 13. Percentage completion as on 31.03.2019 (as declared to RERA or determined by chartered engineer)....
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....ial apartments booked before transition C12*C3 40 units 2800 sqm 14. Value of booked residential apartments C5*C12 24 crore 15. Percentage invoicing of booked residential apartments on or before 31.03.2019 60% 16. Total value supply of residential apartments having t.o.s. prior to transition |C14*C15 14.4 crore 17. ITC to be reversed on transition, Tx=T-Te 18. | Eligible ITC (Te)=Tc+Tr 19. T (*see notes below) 1 crore 20. Tc=Tx (carpet area of commercial apartments in the C19* (C9/C10) 0.125 crore REP/total carpet area 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 C13/C4 0.533 24. F3 |C16/C14 0.600 25. F4 1/C11 5 26. Tr=Tx F1 x F2 x F3 x F4 C19*C22* 1.400 crore C23*C24*C25 27. Eligible ITC (TE)=TC+Tr C26+C20 1.525 crore 28. ITC to be reversed on transition, Tx=T-Te C19-C27 -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 10.8....
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....following manner: 1. Where % completion as on 31st March, 2019 is not zero or where there is inventory in stock (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: Tx=T-Te Where, (iii) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the RREP from 1st July, 2017 to 31st March, 2019 including transitional credittaken on 1st July, 2017; (iv) Te is the eligible ITC attributable to construction of commercial portion and construction of residential portion, in the RREP which has time of supply on or before 31st March, 2019; (b) Te shall be calculated as under: Where, - Fâ‚ = F = Te=T* Fâ‚ * F * F* F4 2 3 Carpet area of residential and commercial apartments in the RREP Total carpet areaofapartments in the RREP (In case of a Residential Real Estate Project, value of "F1" shall be 1.) Fâ‚â‚‚=- Total carpet area of residential and commercial apartment booked on or before 31st March, 2019 Total carpet area of the res....
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....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: - (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 before 31st March, 2019 may be denoted as Te which shall be calculated as under, Te = Tn* Fâ‚ * Fâ‚‚ * F3 Where, - Tn= Tax paid on such inputs and input services on which ITC is available under the CGST 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) The amount 'Te' shall be computed separately for input tax credit of ....
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.... 11. Total value supply of residential apartments having t.o.s. prior to transition C9*C10 9.6 crore 12. ITC to be reversed on transtion, Tx=T-Te 13. Eligible ITC (Te)=Tx F1 x F2 x F3 x F4 14. T (*see notes below) 15. F1 1 crore 1 crore The Arunachal Pradesh Extraordinary Gazette, May 31, 2019 Sl. No. A 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 *Note:- B Ñ D C8/C4 C11/C9 1/C6 0.8 0.2 5 C14*C15*C16*C17*C18 0.8 crore C14-C19 0.2 crore 13 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 declared if GSTR-3B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act' as value of T. Illustration 2: Details of a residential real estate project (RREP) Sl. No. A B C 1. No. of apartments in the project 2. No. of residential apartments in the project D 100 units 75 units 3. Carpet area of the residential apartment 4. Total carpet area of the residential apart....
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....ax on inputs. In actual practice, the registered person shall take ‘aggregate of ITC taken declared if GSTR-3 B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act' as value of T. Annexure-III Anirudh S. Singh Commissioner of State Tax, Government of Arunachal Pradesh, Itanagar. Illustration 1: A promoter has procured following goods and services [other than 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. No. Name of input goods and services Percentage of input goods and services received during the financial year Whether inputs received from registered supplier? (Y/N) 1. Sand 2. Cement 3. Steel 4. Bricks 5. Flooring tiles 6. Paints 7. Architect/designing/CAD drawing etc. 10 Y 15 N 20 Y 15 Y 10 Y 5 Y 10 Y 15 Y 8. Aluminium windows, Ply, 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 ....
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.... 15 Y 10 Y 10 Y 5 Y 10 Y 15 N 10 N 9. 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 purchase, the promoter has to pay GST on cement at the applicable rate on reverse charge basis. After payment of GST on cement, on the remaining shortfall of 15 per cent., the promoter shall @ 18 per cent. under RCM. pay tax Anirudh S. Singh Commissioner of State Tax, Government of Arunachal Pradesh, Itanagar. Annexure-IV FORM (Form for exercising one time option to pay tax on construction of apartments in a project by the promoters at the rate as specified for item (ie) or (if), against serial number 3 in the Table in this notification, as the case may be, by the 10th of May, 2019). Reference No. Το Date (To be addressed to the jurisdictional Commissioner) 1. GSTIN....