TaxTMI 
TaxTMI 
TaxTMI 
Rule 42/43 on Manner of Determination & Reversal of Common Credit
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....ed as 'T1'; (c) the amount of input tax, out of "T", attributable to inputs and input services intended to be used exclusively for effecting exempt supplies, be denoted as 'T2'; (d) the amount of input tax, out of "T", in respect of inputs and input services on which credit is not available under sub-section (5) of section 17, be denoted as 'T3'; (e) the amount of input tax credit credited to the electronic credit ledger of registered person, be denoted as 'C1' and calculated as- C1= T- (T1+T2+T3 ); (f) the amount of input tax credit attributable to inputs and input services intended to be used exclusively for effecting supplies other than exempted but including zero rated supplies, be denoted as 'T4'; 1[Explanation: For the purpose of this clause, it is hereby clarified that in case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the said Act, value of T4 shall be zero during the construction phase because inputs and input services will be commonly used for construction of apartments booked on or before the date of issuance of completion certificate or first occupation of the project, w....
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....8th June, 2017 vide GSR number 690 (E) dated 28th June, 2017, as amended.] 6[Provided further]that where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of 'E/F' shall be calculated by taking values of 'E' and 'F' of the last tax period for which the details of such turnover are available, previous to the month during which the said value of 'E/F' is to be calculated; Explanation : For the purposes of this clause, it is hereby clarified that the aggregate value of exempt supplies and the total turnover shall exclude the amount of any duty or tax levied under entry 84 7[and entry 92A] of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule; (j) the amount of credit attributable to non-business purposes if common inputs and input services are used partly for business and partly for non-business purposes, be denoted as 'D2'and shall be equal to five per cent. of C2 ; and (k) the remainder of the common credit shall be the eligible input tax credit attributed to the purposes of business and for e....
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....turn for a month not later than the month of September following the end of the financial year to which such credit relates. 12[(3) In case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the Act, the input tax determined under sub-rule (1) shall be calculated finally, for each ongoing project or project which commences on or after 1st April, 2019,which did not undergo or did not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period from the commencement of the project or 1st July, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project, in the manner prescribed in the said sub-rule, with the modification that value of E/F shall be calculated taking value of E and F asunder: E = a....
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....llowing the end of financial year in which the completion certificate is issued or first occupation takes place of the project, in the following manner. (a) The aggregate amount of common credit on commercial portion in the project (C3 aggregate_comm ) shall be calculated as under, C3 aggregate_comm = [aggregate of amounts of C3 determined under sub-rule (1) for the tax periods starting from 1st July, 2017 to 31st March, 2019, x (A C / A T )] + [aggregate of amounts of C3 determined under sub-rule (1) for the tax periods starting from 1st April, 2019 to the date of completion or first occupation of the project, whichever is earlier] Where,- AC = total carpet area of the commercial apartments in the project AT = total carpet area of all apartments in the project (b) he amount of final eligible common credit on commercial portion in the project (C3 final_comm) shall be calculated as under C3 final_comm =C3 aggregate_comm x (E/ F) Where, - E = total carpet area of commercial apartments which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier. F = AC = total carpet area of the commercial ap....
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....d exclusively for effecting exempt supplies shall be indicated in 1[ ****] 2[FORM GSTR-3B] and shall not be credited to his electronic credit ledger; (b) the amount of input tax in respect of capital goods used or intended to be used exclusively for effecting supplies other than exempted supplies but including zero-rated supplies shall be indicated in 1[ ****] 2[FORM GSTR-3B] and shall be credited to the electronic credit ledger; 2[Explanation: For the purpose of this clause, it is hereby clarified that in case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the said Act, the amount of input tax in respect of capital goods used or intended to be used exclusively for effecting supplies other than exempted supplies but including zero rated supplies, shall be zero during the construction phase because capital goods will be commonly used for construction of apartments booked on or before the date of issuance of completion certificate or first occupation of the project, whichever is earlier, and those which are not booked by the said date.] 3[(c) the amount of input tax in respect of capital goods not covered under clauses ....
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....#39; is the aggregate value of exempt supplies, made, during the tax period, and 'F' is the total turnover 7[in the State]of the registered person during the tax period: 7[Provided that in case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the Act, the value of 'E/F' for a tax period shall be calculated for each project separately, taking value of E and F as under: E= aggregate carpet area of the apartments, construction of which is exempt from tax plus aggregate carpet area of the apartments, construction of which is not exempt from tax, but are identified by the promoter to be sold after issue of completion certificate or first occupation, whichever is earlier; F= aggregate carpet area of the apartments in the project; Explanation 1 : In the tax period in which the issuance of completion certificate or first occupation of the project takes place, value of E shall also include aggregate carpet area of the apartments, which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier. Explanation 2 : Carpet area of apartments, tax on const....
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....kes place of the project, as under: Te final = [(E1 + E2 + E3) /F] x Tc final, Where,- E1 = aggregate carpet area of the apartments, construction of which is exempt from tax E2 = aggregate carpet area of the apartments, supply of which is partly exempt and partly taxable, consequent to change of rates of tax on 1st April, 2019, which shall be calculated as under, - E2 = [Carpet area of such apartments] x [V1 / (V1 +V2 )],- Where,- V1 is the total value of supply of such apartments which was exempt from tax; and V2 is the total value of supply of such apartments which was taxable E3 = aggregate carpet area of the apartments, construction of which is not exempt from tax, but have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier: F= aggregate carpet area of the apartments in the project; Tc final = aggregate of A final in respect of all capital goods used in the project and A final for each capital goods shall be calculated as under, A final =A x (number of months for which capital goods is used for the project/ 60) and,- (a) where value of Te final exceeds the aggregate of amounts of Te de....
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....rnment of India, Ministry of Finance, Department of Revenue No. 35/2017-Central Tax (Rate), dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR 1284(E), dated the 13th October, 2017.] 5[Explanation 2 : For the purposes of rule 42 and this rule,- (i) 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 ); (ii) the term "project" shall mean a real estate project or a residential real estate project; (iii) 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); (iv) 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; (v) 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); (vi) "Res....