WZ ^/ Ed X W E< : ^, , X s

CO-ORDINATOR:

CA. SUNIL G. KHANDELWAL

SPEAKERS:

SHRI R.S. GOYAL

CA. KRISHAN GARG

CA. PRAKHAR GOYAL

Friday, 05 April 2019

CHAIRMAN CA. PANKAJ SHAH

PRESIDENT CA. VIKRAM GUPTE

4/5/2019

1

GST ‐ REAL ESTATE

TAXABILITY on NEW PROJECTS w.e.f. 01.04.2019(CONCEPTS & CONDITIONS)

NEW PROJECT???“Project that commences onor after 1st April , 2019” shall bein

epe

sm

sda

ble

te

classified under the category of NEWPROJECT.

defi

typ

term

affo

rdrat

‐CA. Prakhar Goyal(SatyanarayanGoyal & Co.)

ine

pes

ms

dabl

ete

TYPES OF CONSTRUCTION IN A

PROJECT

defi

typ

term

affo

rdrat

Affordable Residential apartment in RREP/REP

Residential apartment Other than Affordable in RREP/REP

Commercial Apartments in

an RREP

Commercial Apartments in project other than RREP.


4/5/2019

2

ine

pems

able

te

IMPORTANT TERMS & DEFINITIONS

Real Estate Project (REP)

Residential apartment

defityp

term

affo

rdrat

Residential Real Estate Project

(RREP)

Carpet Area


ine

pems

able

te

IMPORTANT TERMS & DEFINITIONS“Real Estate Project (REP)” : It

shall have the same meaningas assigned to it in clause (zn)of Sec. 2 of RERA Act, 2016

"real estate project" means the developmentof a building or a building consisting of



defityp

term

affo

rdrat

apartments, or converting an existing buildingor a part thereof into apartments, or thedevelopment of land into plots or apartment,as the case may be, for the purpose of sellingall or some of the said apartments or plots orbuilding, as the case may be, and includes thecommon areas, the development works, allimprovements and structures thereon, and alleasement, rights and appurtenancesbelonging thereto;


(RREP)

Carpet Area


ine

pems

able

te




“Residential apartment”shall mean apartmentintended for residential useas declared to the RERAA th it t t

defityp

term

affo

rdrat


(RREP)

Carpet Area

Authority or competentauthority


4/5/2019

3

ine

pems

able

te




“Residential Real EstateProject (RREP)” : It shallmean a REP in which thecarpet area of the

i l t t i t

defityp

term

affo

rdrat


(RREP)

Carpet Area

commercial apartments is notmore than 15 percent of thetotal carpet area of all theapartments in the REP.


ine

pems

able

te




“ Carpet Area” shall have thesame meaning as assignedin clause (k) of Sec. 2 ofRERA Act, 2016.

It means Net usable floor area,excluding

defityp

term

affo

rdrat


(RREP)

Carpet Area

excluding

Area covered by external walls

Areas under service shaft

Exclusive balcony or verandaharea

Exclusive open terrace area

But includes area covered bythe internal partition walls ofthe apartment ‐CA. Prakhar Goyal

(SatyanarayanGoyal & Co.)

ine

pes

msable

te

AFFORDABLE RESIDENTIAL APARTMENT for NEW PROJECT???

A residential apartment having…

Carpet area not di 60 S Mt

Carpet area not exceeding 90 Sq. Mtrs

defi

typ

term

affo

rdrat exceeding 60 Sq. Mtrs

in a metropolitan city and gross amount charged for which is not more than 45.00

Lakhs Rupees.

g qin a city/town other than a metropolitan city and gross amount charged for which is not more than 45.00

Lakhs Rupees.


4/5/2019

4

ine

pes

ms

able

te

Metropolitan Cities

DELHI NCR (DELHI, NOIDA, GREATER NOIDA, GHAZIABAD, GURGAON, FARIDABAD)

KOLKATA

defi

typ

term

affo

rdrat

BANGALORE

CHENNAI

HYDERABAD

MUMBAI (whole MMR)

KOLKATA


ine

pes

ms

able

te

Gross Amount???

Consideration charged for construction ofaffordable residential apartment;

Amount charged for transfer of land orundivided share of land, as the case maybe including by way of lease or sub lease;

defi

typ

term

affo

rdrat be including by way of lease or sub lease;

Any other amount charged by thepromoter from the buyer of the apartmentincluding preferential location charges,development charges, parking charges,common facility charges etc.


ine

pes

ms

dabl

e

te

Effective GST Rates for NEW PROJECT

1% 5% 5% 12%

defi

typ

term

affo

rdrat

Affordable Residential Apartment

in RREP/REP

Residential Apartment other than Affordable Residential apartment in RREP/REP

Commercial Apartment in

RREP

Commercial Apartment in project other than RREP

NO ITC NO ITCNO ITC ITC AVAILABLE

4/5/2019

5

ine

pes

ms

dabl

e

te

CONDITIONS for NEW EFFECTIVE GST RATES OF 1% & 5% !!!

1No INPUT TAX

CREDIT

280% of

VALUE of

defi

typ

term

affo

rdrat

*[other than services by way of grant of development rights, long termlease of land (against upfront payment in the form of premium, salami,development charges etc.) or FSI (including additional FSI), electricity,high speed diesel, motor spirit, natural gas], used in supplying the service

shall be received from registered supplier ONLY.

CREDIT available

VALUE of INPUT & INPUT

SERVICES


ine

pes

ms

dabl

e

te

• PROVIDED THAT...• inputs & input services on which tax is paid on reversecharge basis shall be deemed to have been purchasedfrom registered person;

• when such inputs & input services falls short of saidthreshold of 80%, tax shall be paid on value of suchshortfall at the rate of 18% on reverse charge basis.

defi

typ

term

affo

rdrat

PROVIDED ALSO THAT NOTWITHSTANDING

ANYTHING SAID ABOVE, IF CEMENT IS RECEIVEDFROM URP, TAX SHALL BE PAID BY PROMOTER ONRCM BASIS@ rate applicable to cement. (28%)


SlNo.

Name of Input goods and services

% of input goods &services receivedduring thefinancial year

Whetherinputs fromregisteredperson (Y/N)

1 Sand 10 Y

2 Cement 15 N

3 Steel 20 Y

4 Bricks 15 Y

ILLUSTRATIONS

4 Bricks 15 Y

5 Flooring tiles 10 Y

6 Paints 5 Y

7 Architect/ designing/ CAD drawing etc.

10 Y

8 Aluminium windows, Ply,commercial wood

15 Y

4/5/2019

6

SlNo.


% of input goods &services receivedduring thefinancial year

Whetherinputs fromregisteredperson (Y/N)

1 Sand 10 Y

2 Cement 15 Y

3 Steel 20 Y

4 Bricks 15 Y

ILLUSTRATIONS

4 Bricks 15 Y


6 Paints 5 N


10 Y

8 Aluminium windows, Ply,commercial wood

15 N

ILLUSTRATIONSSlNo.


% of input goods& servicesreceived duringthe financial year

Whether inputsfrom registeredperson (Y/N)

1 Sand 10 N

2 Cement 15 N

3 Steel 15 Y

4 Bricks 10 Y


6 Paints 5 Y


10 N

8 Aluminium windows 15 N

9 Ply, commercial wood 10 N

# Important Explanations:

i. Project wise account of inward supplies from registered& unregistered supplier shall be maintained.

ii. Tax on shortfall to be calculated at end of FY & taxliability on shortfall shall be added to output tax liability


in the month not later than the month of june followingthe end of FY.

iii. However, tax on cement from URP shall be paid underRCM in the month in which cement is received.

iv. ITC not availed shall be reported every month in 3Breturn as ineligible credit.

4/5/2019

7

# Other Important Changes:

Description of service Rate (%)

Conditions for applicability

Composite supply ofworks contract suppliedby way of construction,erection, commissioning,

12 • carpet area of affordable residential apartment isnot less than 50% of total carpet area of allapartment in a project.• to decide value for determining affordable


installation, completion,fitting out, repair,maintenance, renovationor alteration ofaffordable residentialapartment in new projector ongoing project (withnew rates)

apartment: value shall be value of similar apartmentbooked nearest to date of signing of contract forsuch services.• in case finally, carpet area of affordableresidential is less than 50% of total carpet area:The recipient shall be liable to pay tax on RCMbasis as is equal to difference between the tax atapplicable rate & the tax actually paid.

05-04-2019

1

1

R.S. Goyal, Tax Practitionerswebsite : www.rsgoyal.com

e-mail : [email protected]

2

Supply of TDR or FSI by land owner

• Supply of TDR or FSI by land owner to developer• for construction of Residential apartment

Project/Period On or after 01.04.19

Residential apartment sold before CC

No liability of tax on supply of TDR or FSI for residentialprojects

Liability of tax on Builder under RCM No liability of RCM on TDR received by builders

Liability of tax on Builder/ land owner on

the residential apartment sold by them

• At effective rate of 1% in case of affordableResidential house &

• At effective rate of 5% in case of other thanaffordable Residential house 5%

SUPPLY OF TDR OR FSI SUPPLIED ON OR AFTER 01.04.2019 &

CASE 1 – SUPPLY OF RESIDENTIAL APARTMENT BEFORE CC

3


• Supply of TDR by land owner for construction ofcommercial apartment –

• Liability for tax on supply of TDR for Comm. Apartment

Commercial apartment sold before

CC

Liable for tax on supply of TDR for commercialprojects

Liability of tax on Builder under RCM

No exemption to builder for depositing tax under RCMon TDR received by him. He shall be liable to deposittax on Value of TDR supplied by Land Owner.


the commercial apartment sold by them

At effective rate of 12% on supply of commercialapartments


CASE 2 – SUPPLY OF COMMERCIAL APARTMENT BEFORE CC

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4


• Supply of TDR by land owner in the residential & comm.apartment

• If TDR given for construction of both resi. & comm.apartment

• – Liability of tax on pro-rata basis

Residential/commercial apartment sold

before CC

• Liability of tax on Pro-rata basis• on supply of TDR related to commercial apartment only


CASE 3 – SUPPLY OF RESIDENTIAL & COMMERCIAL APARTMENT BEFORE CC

5


before CC

Exemption available for construction of residentialapartment as per formula (#1)

GST Payable on TDR or FSI (including additional FSI)

or both for construction of the project X

(carpet area of the residential apartments in the project

Total carpet area of the residential & commercial apartments in the project.

(#1)




• No liability of RCM on builders for residential aprt. if sold before CC• but liable for RCM on Comm. Aprt. Irrespective of issuance of CC

6

GST Payable on TDR or FSI for construction of the project

Xcarpet area of the residential apartments in

the project


SUPPLY OF TDR OR FSI SUPPLIED ON OR AFTER 01.04.2019 &CASE 3 – SUPPLY OF RESIDENTIAL & COMMERCIAL APARTMENT BEFORE CC Example

3,50,000.00 x 50,000.00 =

Value of Exempted RCM if all the Residential Flats sold before CC

87,500.00 2,00,000.00

Calculation of exempted value of RCMGST on supply of TDR or FSI 3,50,000.00 Carpet Area Residential Apartment 50,000.00 Carpet Area Commercial Apartment 1,50,000.00 Total carpet area 2,00,000.00 Residential apartments remaining un- booked on the date of issuance of completion certificate or first occupation 20,000.00

RCM Payable on the Portion of commercial Property = 2,62,500.00 Total = 3,50,000.00

05-04-2019

3

7SUPPLY OF TDR OR FSI SUPPLIED ON OR AFTER 01.04.2019 &



the residential/ commercial apartment

sold by them

• At effective rate of 1% in case of affordableresidential house

• At effective rate of 5% in case of other thanaffordable residential house

• At effective rate of 12% on supply of comm.Apartments

8


• Supply of TDR or FSI by land owner to Developer forconstruction of Residential apartment –

• if flat remained un-booked on the date of issuance ofCC or First Occupation whichever is earlier

SUPPLY OF TDR OR FSI AFTER ISSUANCE OF CC OR FIRST OCCUPATION – PROVISO

CASE 4 – RESIDENTIAL PROJECT

9


Liability of RCM on Pro-rata basis on such proportion ofvalue of development rights for residential apartmentsremained un-booked on the date of issuance of CC as perthe formula (#2) provided in Noti No. 4 dt 29.03.19 but in anycase the tax under RCM shall not exceed 1% in case ofaffordable resi. houses & 5% in case of other resi. house

05-04-2019

4

10

GST Payable on TDR or FSI for construction of the residential apartments in the project but for the

exemption contained hereinX

carpet area of the residential apartments in the project which remain un-booked on the date of

issuance of completion certificate or first occupation

Total carpet area of the residential apartments in the project.

(#2) SUPPLY OF RESIDENTIAL & COMMERCIAL APARTMENT AFTER CC Example

Amount to be paid at the time of issuance of completion certificate or first occupation GST on supply of TDR or FSI 3,50,000.00 Carpet Area Residential Apartment 50,000.00 Carpet Area Commercial Apartment 1,50,000.00 Total carpet area 2,00,000.00

Residential apartments remaining un- booked on the date of issuance of completion certificate or first occupation 20,000.00

87,500.00 x 20,000.00 = 35,000.00

50,000.00

Amount to be paid at the time of issuance of completion certificate or first occupation by builder under RCM = 35,000.00

11


the residential/ commercial apartment

sold by them

• No liability of GST on the residential apartmentremained un-booked up to the date of issuance ofCC and sold after issuance of CC or first occupationwhichever is earlier

TIME OF SUPPLY FOR SUPPLY OF TDR

The time of supply shall arise on date of completion or firstoccupation, whichever is earlier.

12

Supply of Long Term LeaseService by way of granting of Long term lease of 30years or more

Project/PeriodOn or after 01.04.19 for construction of residentialapartments for sale

LONG TERM LEASE

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13


before CC

Exemption available for construction of residentialapartment as per formula (#3)

GST Payable on upfront amount (called as premium, salami, cost, price, development

charges or by any other name) payable for long term lease of land for construction of the project

X(carpet area of the residential apartments in the

project/


(#3)

14

Liability of tax on Builder

under RCM

Liability of RCM on Pro-rata basis on such proportion of upfrontamount for residential apartments remained un-booked on thedate of issuance of CC as per the formula (#4) provided in NotiNo. 4 dated 29.03.19 but in any case the tax under RCM shallnot exceed 1% in case of affordable residential houses and5% in case of other residential house

GST Payable on upfront amount (called as premium, salami, cost, price, development

charges or by any other name) payable for long term lease of land for construction of the project)

but for the exemption contained herein)

X

(carpet area of the residential apartments in the project which remain un-booked or un-sold on

the date of issuance of completion certificate or first occupation/

Total carpet area of the residential apartments in the project.

(#4)

15

Liability of tax on Builder/ land owner on the

residential/ commercial apartment sold by them

At effective rate of 1% in case of affordable residentialhouse & at effective rate of 5% in case of other thanaffordable residential house 5%

TIME OF SUPPLY FOR SUPPLY OF TDR

The time of supply shall arise on date of completion or firstoccupation, whichever is earlier.

05-04-2019

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16

• Value of Supply of TDR/FSI by a person to the

builder/developer

• shall be deemed to be equal to the value of similar

apartments

• charged by the builder/developer from the independent

buyers

• nearest to the date on which such TDR/FSI transferred to the

builder.

TERMINOLOGY –VALUE OF SUPPLY OF TDR/FSI FOR THE PURPOSE OF RCM

17

• Value of portion of residential or commercial apartment

• remained un-booked on the date of CC or first occupation

• shall be deemed to be equal to the value of similar apartment

• charged by the promoter nearest to the date of issuance of

CC/FO.

TERMINOLOGY –VALUE OF SUPPLY OF UN-BOOKED PORTION

18

3. The following term shall have the same meaning as

assigned it under RERA :-

a. Apartment

b. Promoter

c. Project

d. Real Estate Project (REP)

e. Carpet Area

TERMINOLOGY –DEFINITION BORROWED FROM RERA

05-04-2019

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19

• Residential Real Estate Project (RREP) means

• REP in which carpet area of commercial apartment

• is not more than 15% of the total carpet area

• of all the apartments in the REP.

TERMINOLOGY –Ceiling of Commercial Apartment in RREP

20

• The term ‘an aprt. booked on or before the date of issuance of CC or FO

• shall mean an aprt. which meets all the following three conditions :-

a. Part of supply of construction of the apartment service has time of

supply on or before the said date; and

b. Consideration equal to at least one instalment has been credited to

the bank account of the RP on or before the said date; and

c. An allotment letter or sale agreement or any other similar

document evidencing booking of the aprt. has been issued on or

before the said date.

TERMINOLOGY –Conditions for terming the apartment as booked

21

Insertion of services for RCM u/s 9(3) of CGST Act.Noti No. 05/2019-Central Tax (Rate)

History of Liability of GST on TDR - In case of supply of services by a person to the developer for transferred of development right (TDR) or FSI for construction of a project, previously the liability was on the person who provides such services viz on the landowner.

05-04-2019

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22

Insertion of services for RCM u/s 9(3) of CGST Act. Noti No. 05/2019-Central Tax (Rate) Cont….

More so, for supply of long term lease against consideration

in the form of upfront amount and/or periodic rent

for construction of project by a promoter,

previously the liability was on the person who provides such

services

viz on the landowner.

23

Insertion of services for RCM u/s 9(3) of CGST Act. Noti No. 05/2019 Cont…….

Now a new Entry No. 5b inserted in Noti No. 13/2017-

Central Tax (Rate) dated 28-06-17,

the liability to pay tax shifted from the person, who supplies

the services,

to the promoter who construct the project.

24

(Noti No. 06/2019-Central Tax (Rate))

Registered persons specified for liability to pay GST on receipt

of TDR/FSI/ Long Term Lease u/s 148 of GST Act.

the Central Govt., on the recommendations of the Council,

notified the following classes of RP to pay GST

on receipt of TDR/FSI/ Long Term Lease u/s 148 of GST Act.

05-04-2019

9

25Treatment of TDR/ FSI and Long term lease for projects commencing and supply of Construction service in lieu thereof-after 01.04.2019 - Noti No. 06/2019-Central Tax (Rate)

• a promoter who receives development rights or FSI

• on or after 1st April, 2019 for construction of a project

• against consideration payable or paid by him, wholly or partly,

• in the form of construction service of commercial or residential

apartments

• in the project or in any other form including in cash;

26Treatment of TDR/ FSI and Long term lease for projects commencing and supply of Construction service in lieu thereof-after 01.04.2019 - Noti No. 06/2019-Central Tax (Rate)

• a promoter, who receives long term lease of land

• on or after 1st April, 2019

• for construction of residential apartments in a project

• against consideration payable or paid by him,

• in the form of upfront amount,

27Noti No. 06/2019-Central Tax (Rate)

RP liable to pay GST on following activities -

(a) the consideration paid by him

• in the form of construction service of

• commercial or residential apartments

• in the project,

• for supply of development rights or FSI;

05-04-2019

10



(b) the monetary consideration paid by him,

• for supply of development rights or FSI relatable to

• construction of residential apartments in project;

29

Noti No. 06/2019-Central Tax (Rate)


(c) the upfront amount paid by him for

• long term lease of land relatable to

• construction of residential apartments in the project



• the supply of construction service by him

• against consideration in the form of TDR or FSI,

Time of Supply

shall arise on the date of issuance of completion certificate

or on its first occupation,

whichever is earlier.

05-04-2019

11

31 Noti No. 03/2019-Central Tax (Rate)

• In case a regd. landowner transfers development right or FSI

• to a developer

• against consideration, wholly or partly,

• in the form of construction of apartments, -

• the developer has to pay tax on supply of construction of

apartment and

• the land owner shall be eligible to claim ITC of tax charged by

the developer

32 Noti No. 03/2019-Central Tax (Rate)

provided that

• the landowner further supplies such apartments

• to his buyers before issuance of completion certificate or first

occupation, whichever is earlier, and

• pays tax on the same which is not less than the amount of tax

charged from him

• on construction of such apartments by the developer

33

R.S. Goyal, Tax Practitionerswebsite : www.rsgoyal.com

e-mail : [email protected]

05-04-2019

1

Reduction in Rate of Tax

CA Krishan Garg

Effective Date and Notifications Issued

Notification No. 03-08 and 16/2019 CTR

Effective from 01/04/2019

CA Krishan Garg

05-04-2019

2

Applicability

CA Krishan Garg

Ongoing Projects(Option to be taken)

New Projects (No option)

CA Krishan Garg

Meaning of Ongoing Project (1/2)

Cons

t. Co

mm

ence

men

t Ce

rtifi

cate

Req

d. • Issued by Competent Authority on or before 31/03/2019

• Certified by Architect/ Chartered Engineer or Licensed Surveyor for start of project

Cert

ifica

te N

ot R

eqd. • Certified by

Architect/Chartered Engineer or Licensed Surveyor for start of project on or before 31/03/2019

Whe

n co

nsid

ered

to

have

st

arte

d • Earthwork for site preparation completed

• Excavation for foundation started

CA Krishan Garg

05-04-2019

3

Meaning of Ongoing Project (2/2)

• CC has not been issued

• First Occupation not taken place

CC or Ist Occupation

• Partly or• Wholly booked

on or before 31-03-2019

Appt. Partly or wholly booked • Part consideration become

due and payable • Atleast 1 inst. Credited• Allotment Letter or Sale

Agreement issued

Condition for Appt. booked

CA Krishan Garg

Ongoing projects – To decide

For continuing with existing scheme

Normal Residential Project-12%

Affordable Housing Proj-8%

Or to go with new ratesOr to go with new ratesCA Krishan Garg

Ongoing Project- If opted to continue with existing scheme

No change in rate

• Rate of Tax 8/12

ITC • Available

Rules• Existing

rules will be applicable

CA Krishan Garg

05-04-2019

4

Conditions for exercising one time option

Submit application before Commissioner in

the specific format

Last date 10/05/2019 (meanwhile invoices can be

issued as per option exercised)

Option to be exercised project wise and not on unit or company wise

If no option letter given then it will be deemed that lower

rate option exercised

How to exercise existing rate Option

CA Krishan Garg

Affordable Housing Option exercised - Existing Scheme to be followed

Existing scheme to follow

Opted for 8%

Ongoing Project

CA Krishan Garg

Ongoing Project- Effect if decided to be covered under new scheme

• RCM for shortfall in 80% criteria

• Maintain project wise accounting

• No ITC• Payment in cash

Reverse ITC

Reversal on project wise

ITC not availed to be reported

as ineligible credit

Reversal-Reverse

credit or in cash

CA Krishan Garg

05-04-2019

5

ITC Eligibility and Reversal

CA Krishan Garg

Classification of Project

• Section 2 of RERA• Development of Building for

sale


• A REP in which carpet area of commercial unit not more than 15%


(RREP)CA Krishan Garg

REP Ongoing Projects : ITC attributable to Residential Portion

Existing rate option not

exercised (paying with lower rate)

Has time of Supply after 31/03/2019

Calculation project wise

CA Krishan Garg

05-04-2019

6

Situations: Till 31/03/2019

Certain % of completion is there

There is inventory in stock

Where % completion is zero but ITC availed on goods and services

received

Where % completion is zero but invoicing has been done and no

input/services received

Different Situations

CA Krishan Garg

REP Ongoing Project: Calculation of ITCWhere % completion is not zero or there is inventory

Commercial 40%

Affordable 30%

Normal 30%

ITC upto TOS 31/03/2019

ITC upto TOS 31/03/2019

Full ITC available CA Krishan Garg

Example- Project having 100000 sq. ft. Carpet Area and is 50% completeCommercial Area-50000 Sq. Ft• Booked 25000 Sq. Ft. (50%)- Total Value 10 crore• Amount due or Received – 7crore

Residential Affordable- 25000 Sq. Ft• Booked 10000 Sq. Ft. (40%)- Total Value 5 crore• Amount due or Received- 3 crore

Residential- Normal- 25000 Sq. Ft.• Booked 20000 Sq. Ft. (80%) – Total Value 10 crore• Amount due or Received- 4 crore

Total Carpet Area (C)- 50K Sq. Ft/100k Sq. Ft.

Carpet area (R) 50k sq. ft and booked 30k Sq. Ft

VOS (R) received 9 crore against total VOS – 15 crore CA Krishan Garg

05-04-2019

7

Summary: Completion percentage 50%

Nature of Activity

Carpet Area (sq. ft.)

Booked Area(sq. ft.)

% Unsold Area(sq. ft.)

Total VOS (crore)

VOS paid or payable (crore)

% of VOS paid or payable

Commercial

50000 25000 50 25000 10 7 70%

Affordable 25000 10000 40 15000 5 3 60%

Normal Residential Project

25000 20000 80 5000 10 4 40%

Total 100000 55000 55 45000 25 14 56%

CA Krishan Garg

ITC on inputs and input services attributable to Residential portion for TOS after 31/03/2019

ITC attributable to

TOS after 31/03/19 (Tx)

•Tx= Total ITC (T) – Eligible ITC (Te)

Total ITC

means

•ITC availed since 01/07/2017 including Transitional

CA Krishan Garg

How to calculate Total Eligible ITC : (Te=Tc+Tr)

CA Krishan Garg

Total Eligible ITC (Te) =

Eligible Commercial

ITC (Tc)+

Eligible Residential ITC

(Tr)

Tc=

Tr=

% completion as reported

in RERA otherwise

certified by Arch/Engg.

% completion as reported

in RERA otherwise

certified by Arch/Engg.

Total ITC

Carpet Area (C)Total Carpet Area (C+R)

Total ITC

Carpet (R)Total Carpet Area (C+R)

Booked

Total Carpet (R)

VOSTotal VOS Booked

1% of completion

05-04-2019

8

Alternate Option for calculation of Total Eligible Credit (Te)

Total eligible

(Te)=

Common Comm. Credit (Tc)+

Exclusive Comm Credit (T1)+

Eligible Residential Credit (Tr)

CA Krishan Garg

Result: Key Points

Pay Tax by reversal

or in cash

Furnish detail in Form ITC-03

If Tx is positive

In GST DRC-20

Commissioner order in GST DRC

21

Can request for instalment

CA Krishan Garg

REP Ongoing Project: Calculation of ITCWhere % completion is zero but ITC availed

Same procedure to be followed except

Modification in percentage completion

Percent Completion which can be achieved with input services received and inputs in stock to be certified by Architect/Engineer

CA Krishan Garg

05-04-2019

9

Where % completion is zero and no input/input services received but Invoicing as per TOS done

Total Eligible Credit (Te) = Eligible Commercial ITC (Tc)+Eligible Residential ITC (Tr)

Tc= ITC to be used in 2019-20*Carpet area comm/Total Carpet Area (C+R)

Tr=Tn*F1*F2*F3

Tn=Tax paid on inputs & Services in 2019-20CA Krishan Garg

Difference in percentage invoicing and percentage completion

Difference in percentage invoicing with percentage completion

If difference > 25%Then percentage invoicing deemed to be percentage completion +25%

Value of Invoices issued exceeds consideration recd.

If Difference >25%Then percentage invoicing deemed to be actual consideration received +25%

Value of inputs and services

If procurement of Inputs/services exceeds >25% of actual consumption

Te to be decided by commissioner based on actual per unit consumption duly certified by CA or CWA

CA Krishan Garg

Date post:	09-Aug-2020
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