Notification No. 05/2019-Union Territory Tax (Rate) –  Seeks to amend notification No. 13/2017- Union Territory 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.

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 05/2019-Union Territory Tax (Rate)

New Delhi, the 29th March, 2019

GSR.264(E).- In exercise of the powers conferred by sub-section (3) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 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.13/2017- Union Territory Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 704(E), dated the 28thJune, 2017, namely:-

In the said notification, –

(i) in the Table, after serial number 5A and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

(1) (2) (3) (4)
“5B 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.
5C 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 1st of April, 2019.

[F. No. 354/32/2019- TRU]

(Pramod Kumar)
Deputy Secretary to the Government of India

Note: -The principal notification No. 13/2017 – Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 704 (E), dated the 28th June, 2017 and was last amended by notification No. 29/ 2018- Union Territory Tax (Rate), dated the 31st December, 2018 vide number G.S.R. 1281 (E), dated the 31st December, 2018.

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3 Comments

  1. Land Owner Question says:

    TaxGuru

    1.Gave land for commercial complex development to a developer in Aug 2017. Developer will get 50%of constructed complex as compensation for developing.

    2. Current status is that construction is still in progress.

    3. Neither the land owner nor the developer have entered into a sale agreement or sold any of the property currently under construction.

    A. Does the above attract GST payment?

    B. Does the land owner or the developer who has to pay GST ?

    C. How much GST needs to be paid ?

    1. Hrithik Jain says:

      Hi Kumar
      GST is charged only on the properties which are under construction,The rates however vary depending on the area of the house,On the basis of the area the house will be classified as affordable and non affordable.In case of affordable housing GST will be charged @1% and in case of non Affordable GST Shall be charged@5%,Please feel free to revert in case you have any further queries

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