TaxTMI 
TaxTMI 
Seeks to amend Notification No. .11/2017- State Tax (Rate), dated the 28th June, 2017
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....te), 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 central tax on construction of apartments at the rates ....
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....hich 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 for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificat....
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.... 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, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the State Goods and Services Tax Act, 2017 (7 of 2017), shall apply to him as if he is the perso....
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....hortfall 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 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 i....
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.... 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: - "(xii) Construction services other than (i), (ia), (ib), (ic), (id), (ie), (if), (iii), (iv), (v), (va), (vi), (vii), (viii), (ix), (×) 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 central tax prescribed against them i....
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.... 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 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 assig....
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.... 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 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. 6 The Arunachal Pradesh Extraordinary Gazette, May 31, 2019 (e) where commencement certificate in respect of the project, is not ....
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....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 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. Anirudh S. Singh Commissioner of State Tax, Government of Arunachal Pradesh,....
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....st 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 booked on or before 31st March, 2019. (F3 is to account for percentage invoicing of booked residential apartments) F= 4 1 % Completion of construction as on 31st March, 2019 4 Illustration: where one- fifth (twenty percent) of the construction has been completed, F 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 t....
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.... 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 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 on or before 31st March, 2019 and which shall be calculated as under, Tr=Tn* Fi * Fâ‚....
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....arpet 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) No. of residential apartments booked before transtion Total carpet area of the residential apartments booked before transition 45.00 crore 25 units 30 sqm 750 sqm 6000 sqm 20% C12*C3 40 units 2800 sqm 15 14. Value of booked residential apartments C5*C12 24 crore 15. Percentage invoicing of booked residential apartments on or before 31.03.2019 20% 16. Total value supply of residential apartments having t.o.s. prior to transition [C14*C15 4.8 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 REP/ total carpet area of commercial and residential apartments in the REP) C19* (C9/C10) 0.125 c....
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.... -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=Tx F1 x F2 x F3 x F4 (after application of cap) C19*C22* 1.05 crore C23*C24*C25 36. | Eligible ITC(Te)=Tc + Tr (after application of cap) C20+C35 1.18 crore 37. ITC to be reversed/taken on transition, Tx=T-Te (after application of cap) C19+C36 -0.18 crore 38. Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation 39. % invoicing after application of cap (Pc + 25%) 40. Total value of supply of residential apartments having |t.o.s. prior to transition C33 45% 8.00 crore 41. Consideration received 8.00 crore 42. Total value of supply of residential apartments having t.o.s. prior to transition 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 F2x F3 x F4 (after application of both the caps) C42/C14 0.42 C19*C22* 0.97 C23*C24*C25 45. 46....
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....ject, 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 residential and commercial apartment in the RREP 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) 1 Fâ‚= % Completion of construction as on 31st March, 2019 Illustration: where one-fifth (twenty percent) of the construction has been completed, Fâ‚ shall be 100 ÷ 20 = 5. 4 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 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 constitu....
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....erwise 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: (iv) 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; (V) 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 received plus 25 per cent. of the actual consideration received; and (vi) where, the value of procurement of inputs and input services prior to 1st April, 2019 exceeds the value of actual consumpti....
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....partment 5. Value of each residential apartment 70 sqm C2*C3 7000 sqm 0.60 crore 6. Percentage completion as on 31.03.2019 (as declared to RERA or determined by chartered engineer) 20% 7. No. of apartments booked before transition 8. Total carpet area of the residential apartments C3*C7 80% units 5600 sqm booked before transition 9. Value of booked residential apartments C9*C10 10. Percentage invoicing of booked residential apartments on or before 31.03.2019 28.8 crore 60% 11. Total value of supply of residential apartments having t.o.s. prior to transition C9*C10 28.8 crore 12. 13. 2345 ITC to be reversed on transition, Tx=T-Te Eligible ITC (Te)=Tx F1 x F2 x F3 x F4 14. T (*see notes below) 15. F1 16. F2 17. F3 18. F4 C8/C4 C11/C9 1/C6 1 crore 1 0.8 0.6 5 19. Eligible ITC (Te)=Tx F1 x F2 x F3 x F4 C14*C15*C16*C17*C18] 2.4 crore 20. ITC to be reversed on transition, Tx=T-Te C14-C19 -0.4 crore 22222 21. Tx after application of cap on % invoicing vis-a-vis Pc % completion 20% 23. % invoicing 60% 24. % invoicing after application of cap (Pc + 25%) C6+25% 45% 25. Total value of supply of residential apartments having t.o.s. prior to transition C9*C24 21.60 crore 26. F3 after applicatio....
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....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. 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. 8. Aluminium windows, Ply, commercial wood 10 Y 15 Y 20 Y 15 Y 10 Y 5 N 10 Y 15 N In this 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 unregist....