Reverse Charge Mechanism in GST- Real Estate Sector

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....al Estate Project (herein after referred to as RREP) (ia) Construction of residential apartments other than affordable residential apartments by a promoter in an RREP (ib) Construction of commercial apartments (shops, offices, godowns etc.) by a promoter in an RREP * Which construction project commences on or after 1st April, 2019 or in an ongoing in a Real Estate Project (herein after referred to as REP) other than RREP,  (ic) Construction of affordable residential apartments by a promoter in a Real Estate Project (herein after referred to as REP) other than RREP,  (id) Construction of residential apartments other than affordable residential apartments by a promoter in a REP other than a RREP  In re....

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.... 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. * In case of Cement purchase from unregistered person * 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 * Time of supply - Tax under RCM on cement, received from unregistered person shall be paid in the month in which cement is received. * In case of Cement purchase from unregistered person * Where capital goods is received from an unregistered person, the promoter shall pay tax on supply of such capital goods at the applicab....

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....of the financial year, by real estate promoter/developer supplying construction of residential apartment etc.[ Instruction No. 3/2/2020- GST, dated 24th June 2020 ] * A revised GST rate has been prescribed, w.e.f. the 1st April, 2019 on the supply of service by way of construction of residential apartment.  (These rates have been prescribed Vide  Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended. * Person required to pay tax in accordance with the Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended on the shortfall from threshold requirement of procuring input and input services (below 80%) from registered person shall use the form DRC-03 to pay the tax ....

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....24.06.2020 ] Example 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  10 Y 2 Cement 15 N 3 Steel 20 Y 4 Bricks 15 Y 5 Flooring tiles 10 Y 6 Paints 5 Y 7 Architect/ designing/ CAD drawing etc. 10 Y 8 Aluminium windows, Ply, commercial wood 15 Y In this example, the promoter has procured 80 per cent. of g....

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....ood etc. from an unregistered supplier. Hence at the end of financial year, the promoter is not required 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 and services received during the financial year Whether inputs procured from registered supplier?  (....