Real Estate – New GST Rates and Challenges! CA Pritam Mahure 2nd Edition

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Guide on new GST rates on real estate in India !

Courtesy: CA PRITAM MAHURE

Real Estate – New GST Rates and Challenges

 

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File Type: PDF  / File Size: 3 MB / Pages : 271 – Update edition 01.04.2019

Contents and Page Numbers

Real Estate – New GST Rates and Challenges ………………….. 2
About the Author ………………………………………………………… 6
1. Real Estate – Changes / challenges from 1st April 2019 …. 7
1.1 Types of real estate transactions …………………………………… 7
1.2 Rate of GST on real estate before 31st March 2019 …………….. 7
1.3 Reconsideration of rates by 33rd and 34h GSTC meeting………. 8
1.4 Notifications issued (rates from 1st April 2019) ………………….. 9
1.4 Deduction towards land / undivided share of land ………………10
1.5 Shifting of burden from consumer to developers ……………….13
1.6 New rates – Option of compulsion? ………………………………..13
1.6.1 One-time option – Means? …………………………………… 14
1.6.2 Option – Building-wise or project-wise? …………………… 17
1.7 Meaning of ‘ongoing project’ ………………………………………..18
1.7.1 Meaning of ‘construction’ and ‘booking’……………………. 22
1.7.2 New rates – Default option…………………………………… 24
1.7.3 Can a developer opt for practical solution? ……………….. 25
1.8 Conditions if opting for existing rates ……………………………..26
1.8.1 Paying GST in cash ……………………………………………. 27
1.8.2 No ITC …………………………………………………………… 29
1.8.3 Condition of 80% procurement! …………………………….. 30
1.8.3.a What if RCM is applicable? …………………………………. 32
1.8.3.b 80% requirement is financial year-wise! ……………….. 32
1.8.3.c Project-wise details! ………………………………………… 41
1.8.3.d Ensure filing and payment by vendors? …………………. 43
1.8.4 GST on JDA ……………………………………………………… 43
1.9 Will the basic property price increase? ……………………………45
1.10 Procurement with concessional rate ……………………………..48
1.11 Be ready for future surprises! …………………………………….50
1.12 New rate of 1% – Applicable to? ………………………………….52
1.12.1 What is included in 45 lacs? ……………………………….. 54
1.13 New rate of 5% – Applicable to? ………………………………….55
1.13.1 5% on ongoing projects …………………………………….. 56
1.13.2 5% on new projects …………………………………………. 57
1.13.3 5% for specified commercial properties …………………. 58
1.14 12% for other than specified commercial properties ………….60
1.15 Impact of changes on ITC ………………………………………….60
1.15.1 ITC Impact on developers having mix projects …………. 64
1.15.2 Impact on transitional credits and other aspects ………. 65
1.15.3 Can removal of difficulty order cure all issues? ………… 67
1.15.4 Reversal in case of completed projects ………………….. 69
1.16 Implication on development rights/ TDR etc ……………………70
1.16.1 What if units are sold after completion? …………………. 73
1.16.1.a Can GST be levied on development rights/ TDR …….. 75
1.16.2 GST on upfront premiums ………………………………….. 77
1.16.2.a What if units are sold after completion? ………………. 79
1.16.3 RCM on TDR/FSI and lease premiums ……………………. 81
1.16.4 Time of Supply of TDR/FSI, premiums and JDA ………… 82
1.17. Anti-profiteering provisions – Lack of mechanism ……………85
2. Key Notifications, PRs, FAQs etc ………………………………. 88
2.1 Amended GST Rule ……………………………………………………88
2.1.1 Rule 42 as amended ………………………………………….. 88
2.1.2 Rule 43 as amended ………………………………………… 101
2.2 Notifications (CGST) ……………………………………………….. 115
2.2.1 16/2019 – Changes in GST Rules (from 1st April 2019) . 115
2.2.2 3/2019-CT (R) – New GST rates (from 1st April 2019) .. 142
2.2.3 4/2019-CT (R) – Exemption for TDR, FSI, premiums …. 215
2.2.4 5/2019-CT (R) – RCM on TDR, FSI, premiums …………. 229
2.2.5 6/2018-CT (R) – ToS for TDR, FSI and JDA …………….. 233
2.2.6 7/2018-CT (R) – URD RCM …………………………………. 237
2.2.7 8/2018-CT (R) – GST rate for goods …………………….. 241
2.2.8 11/2017-CT (R) – GST Rate (upto 31st Mar. 19) ………. 245
2.3 Press Releases (PR) ………………………………………………… 248
2.3.1 34th GSTC PR …………………………………………………. 248
2.3.2 33rd GSTC PR …………………………………………………. 254
2.3.3 25th GSTC PR …………………………………………………. 257
2.3.4 PR dated 8th December 2018 ………………………………. 263
2.3.5 PR dated 15th June 2017 ……………………………………. 266
2.4 Specific FAQs for RE ……………………………………………….. 270
2.4.1 FAQ on Time of Supply ……………………………………… 270

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