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CBIC notifies specified class of Registered Person liable to pay tax under RCM u/s 9(4) of the CGST Act, 2017 w.e.f. April 01, 2019

The Central Board of Indirect Taxes and Customs (“CBIC”) has issued a Notification No. 07/2019 – Central Tax (Rate) dated March 29, 2019 which notifies the specified class of registered person who will receive the supply of goods or services or both from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or services or both. The following are the list of goods or service on which liability to be paid on reverse charge basis by the recipient with effect from April 01, 2019.

  • Category of supply of goods and services: Supply of such goods and services or both [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)] which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.

Recipient of goods or services: Promoter

  • Category of supply of goods and services: Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.

Recipient of goods or services: Promoter

  • Category of supply of goods and services: Capital goods falling under any chapter in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed for items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.
  • Recipient of goods or services: Promoter

Explanation. - For the purpose of this notification, -

  • 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);
  • “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
  • 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);
  • “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
  • the term “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

This notification shall come into force with effect from the April 01, 2019  

 

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