Union Territory Tax Notification (Rate) 04/2018 – Seeks to provide special procedure with respect to payment of tax by registered person supplying service by way of construction against transfer of development right and vice versa.

Union Territory Tax Notifications (Rate)

UTGST Notification rate 04/2018

In exercise of the powers conferred by section 21 of Union
Territory Goods and Services Tax Act, 2017 (14 of 2017) read with
section 148 of the Central Goods and Services Tax Act, 2017 (12 of
2017), the Central Government, on the recommendations of the
Council, hereby notifies the following classes of registered
persons, namely:-

(a) registered persons who supply development rights to a developer,
builder, construction company or any other registered person against
consideration, wholly or partly, in the form of construction service
of complex, building or civil structure; and

(b) registered persons who supply construction service of complex,
building or civil structure to supplier of development rights
against consideration, wholly or partly, in the form of transfer of
development rights,

as the registered persons in whose case the liability to pay Union territory tax on supply of the
said services, on the consideration received in the form of construction service referred to in
clause (a) above and in the form of development rights referred to in clause (b) above, shall arise
at the time when the said developer, builder, construction company or any other registered
person, as the case may be, transfers possession or the right in the constructed complex, building
or civil structure, to the person supplying the development rights by entering into a conveyance
deed or similar instrument (for example allotment letter).