Implication on Real Estate & other issues in GST (Amendments)

1. Implication on Real Estate & other issues in GST (Amendments)

2. Notifications and other material

3. Highlights of New Scheme

4. Highlights of New Scheme

5. Rate Change or Business Change!!

6. Impact areas on project in Transition and New

7. Impact on Sale Price of the project

8. Exclusive GST Contract

9. Inclusive GST Contract

10. Concept of Implied Contract

11. Implied Contract • Section 9 of Contract Act: Promises, express and implied • In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied. • Southern Foundries (1926) Ltd v Shirlaw • 'Prima facie that which in any contract is left to be implied and need not be expressed is something so obvious that it goes without saying; so that, if while the parties were making their bargain an officious by-stander were to suggest some express provision for it in their agreement, they would testily suppress him with a common, 'Oh, of course'. • Section 171 CGST Act: Anti-profiteering measure • Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.

12. Real Estate Transactions

13. Real Estate Transactions

14. Construction Service

15. Definitions

16. Affordable Residential Apartment

17. 80IBA v/s GST

18. Ongoing Project &Project which commences on or after 1st April, 2019

19. Residential and Commercial Apartment • Residential: an apartment intended for residential use as declared to the RERA • Commercial: Other than residential

20. Commencement certificate • The commencement certificate or the building permit or the construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan.

21. Identify Project!!

22. Identify Project!! • Multistorey Ltd. has a plot of land admeasuring 6000 sqmt. It had planned to construct 2 towers on it in 2 phases. Phase 1, Construction has been started in January 2018 for first tower, which is under construction as of now. Phase 2, Construction of Second tower will start in January 2020. • How many projects are there?

23. Rates

24. Rate Summary

25. Conditions for New Rates

26. Conditions for New Rates

27. Condition of 80% Procurement

28. Conditions for New Rates

29. Conditions for New Rates: Pay under RCM

30. Illustration: 1

31. Illustration 2

32. Developer & Land owner Condition

33. Major Types of Development Agreements

34. Developer Condition w.e.f. 01.04.2019

35. Land owner Condition w.e.f. 01.04.2019

36. Rate of tax for Contractors

37. Composite supply of works contract

38. Development Rights/ LT Lease

39. Are Development Rights taxable?

40. RCM for Promoter [Sec. 9(3)/5(3)]

41. Exemption for DR/LT Lease

42. REVERSAL in case of Sale of Units post Completion

43. Removal of Difficulty Order

44. Case Studies

45. Questions • Whether all the apartments in a project has to satisfy the condition of affordable housing in order to avail the concessional effective rate of 1% on the affordable residential apartment? • Whether the Landlord be eligible to avail input tax credit on the construction services which are taxable at the effective of rate of 1% and 5% in an on-going project? • Whether a sub-contractor or any other person who is only providing construction services and is not involved in sale can claim the above concessional rates of tax?

46. Gross Amount Charged • Mr. C (builder) sells a residential apartment to Mr. D(before obtaining CC) at Rs. 40 lakhs (excluding GST). He charges an additional amount towards preferential location charges. • Comment on GST rate if: • Case 1: Preferential charges constitute Rs. 2.75 lakhs • Case 2: Preferential charges constitute Rs.8 lakhs

47. Computation of Reversal

48. Thank You