Integrated Tax Notifications (Rate)
IGST Notification rate 05/2019
| Title | Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector. |
| Number | 05/2019 |
| Date | 29-03-2019 |
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1) In exercise of the powers conferred by sub-section (3) of section 5 of the
Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the
recommendations of the Council, hereby makes the following further amendments in the
notification of the Government of India, in the Ministry of Finance (Department of Revenue),
No.10/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 685(E), dated the 28th
June, 2017, namely:-
In the said notification, –
- (i) in the Table, after serial number 6A and the entries relating thereto, the following serial
number and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| “6B | Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter. |
Any person | Promoter. |
| 6C | Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. |
Any person | Promoter.”; |
- (ii) in the Explanation, after clause (h), the following clauses shall be inserted, namely: –
“(i) The term “apartment” shall have the same meaning as assigned to it in clause (e)
under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).(j) the term “promoter” shall have the same meaning as assigned to it in clause (zk) under
section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).(k) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate
Project (RREP);(l) “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).(m) 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.(n) “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 1
st of April, 2019.