Notification No. 07/2019-Central Tax (Rate) – Seeks to notify certain services to be taxed under RCM under section 9(4) of CGST Act as recommended by Goods and Services Tax Council for real estate sector.
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 07/2019-Central Tax (Rate)
New Delhi, the 29th March, 2019
G.S.R. 254(E).– In exercise of the powers conferred by sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies that the registered person specified in column (3) of the table below, shall in respect of supply of goods or services or both specified in column (2) of the Table below, received from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or services or both, namely:-
Table
| Sl. No. | Category of supply of goods and services | Recipient of goods and services |
| (1) | (2) | (3) |
| 1 | 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. | Promoter. |
| 2 | 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. | Promoter. |
| 3 | 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. | Promoter |
Explanation. – For the purpose of this notification, –
(i) 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);
(ii) “project”shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
(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) “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 “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 1st of April, 2019.
[F. No. 354/32/2019-TRU]
(Pramod Kumar)
Deputy Secretary to the Government of India
A Manufacturing Company Building a Concreate Road in their Plot The Purchase the Material from Unregister persons is liable for RCM? And Whether they can take back the Credit?
Respected Sir
I am Composition Tax Payer Doing Business Of SCRAP and Used Vehicle’s in want to.know If i Purchase Scrap And Used Vehicles from UNREGISTERED DEALER is RCM payable On Those Transactions ??
Please Guide me with legal Evidence
many Tax consultant said that SCRAP is covred Under notified list of section 9(3) and 9(4)
Please help