Real Estate Developer allowed to pay GST before the issuance of the completion certificate

CBIC [Central Board of Indirect Taxes & Customs] has released Notification Number No. 03/2021 – Central Tax (Rate) dated 2nd June 2021. GST Council in its 43rd Meeting has decided to make it clear that landowner promoters could utilize the credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land promotor and on which GST is paid. Now the developer promotor shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of the completion certificate and the landowners can utilize the Input Tax Credit [ITC] of GST charged to them by the developer in respect of such apartments that are subsequently sold by them.

MINISTRY OF FINANCE

(Department of Revenue)

Notification

New Delhi, the 2nd June, 2021

No. 03/2021 – Central Tax (Rate)

G.S.R. 380(E).—In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.06/2019- Central Tax (Rate), dated the 29th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 253(E), dated the 29th March, 2019—

In the said notification, in the first paragraph,-

(a) for the words “in whose case the liability to”, the words “, who shall” shall be substituted;

(b) for the words “shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier”, the words “in a tax period not later than the tax period in which the date of issuance of the completion certificate for the project, where required, by the competent authority, or the date of its first occupation, whichever is earlier, falls” shall be substituted.

2. This notification shall come into force with effect from the 2nd day of June, 2021.

[F. No. 354/53/2021-TRU]

RAJEEV RANJAN, Under Secy.

Note: The principal notification No. 06/2019 – Central Tax (Rate), dated the 29th March, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 253(E), dated the 29th March, 2019.