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Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
Subject News *   Delhi HC Quashes Order, Says Reminder Cannot Validate Improperly Served GST SCN *  KARNATAKA HIGH COURT REMANDS GST SHORTFALL MATTER DUE TO ABSENCE OF PERSONAL HEARING   *  CESTAT cancels confiscation and penalties on imported computer cabinet cases: Custom duty restricted to 111 surplus units *  Deposit of tax during search or investigation cannot be treated as 'Voluntary Payment' : Bombay High Court *  Section 76 of the CGST cannot be invoked where the tax has already been duly deposited, even if through another registration of the same entity: Madras High Court *  Sec 74 allows use of material regardless of source; illegality or flaws in section 67 search do not vitiate valid adjudication: HC *  Inter-State transfer of ITC on Amalgamation permissible as given under section 18(3) read with rule 41 of the CGST rules, 2017: Gujarat High Court *  HC: No GST on commisson paid to Pigmy Agents *  IGST refund denial on illegible bill of lading invalid absent chance to furnish docs; merit reconsideration in appeals directed: HC *  ITC is not admissible on GST paid on leasehold rights of land used fpr setting up an air seperation plant: AAAR,Tamil Nadu *  GST: No penalty under Section 74 after voluntary ITC reversal due to non-existent supplier : High Court *  TN AAAR denies GST ITC on Land Lease under Sec. 17(5)(d) for setting up plant and machinery *  GST proceedings quashed as notices sent to old address, despite updated address in registration *  Importer Can’t Be Penalised for Alleged IGCR Procedural Lapses Without Evidence of Departmental Error: CESTAT *  Structured Healthcare Training Not ‘Charitable Activity’, 18% GST Payable: AAR  *  CESTAT As The Appellate Authority For Central Sales Tax Disputes: A Paradigm Shift Under Finance Act, 2023 *   Rs. 25K Cost Imposed On SGST Joint Commissioner for Attaching Bank  Accounts Without Forming Mandatory “Opinion”: Bombay HC *   Ex-Parte GST Order Without Hearing Violates Natural Justice: Karnataka  High Court Quashes Adjudication and Bank Attachment.  *   Retrospective GST Cancellation Can’t Invalidate Genuine Transactions:  Jaipur Commissioner (Appeals) Quashes Rs. 95,670 ITC Demand. *   GST Pre-Deposit Non-Compliance: Allahabad High Court Allows Appeal  Subject to Rs. 30 Lakh Balance Deposit, Recognises Offline Filing. *  Documentary Nature of Evidence: Allahabad High Court Grants Bail in Rs. 32.66 Crore Fake ITC Fraud Case *  Supreme Court Flags Systemic Bias in Army’s Permanent Commission Process for Women Officers *  Re-Determination of Land Compensation Can Be Based on Appellate Court Awards, Clarifies Scope of S. 28-A: Supreme Court. *  Supreme Court Imposes Rs. 5 Lakh Costs On Rent Authority Officer For Acting Beyond Jurisdiction. *  DGGI Meerut | Court Denies Bail to Accused in Claiming Fake ITC And Export Refunds *  Denial of GST Rate Revision Benefit to Contractor Violates Article 14: Rajasthan HC *  GST Registration Cancellation for Non-Filing of Returns: Gauhati High Court Directs Restoration on Compliance. *   Supreme Court Quashes FEMA Adjudication Orders, Revives Proceedings at  Show Cause Stage. *   Higher Rank, Harsher Punishment Justified: Supreme Court Restores Dismissal  of Bank Manager in Misappropriation Case. *   Limitation for Export Refund to Be Counted from Foreign Exchange Realisation,  Not From Export Invoices Issuance: CESTAT  

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GST UPDATE ON FAQ

GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11
GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11:-
 
In earlier update, we have discussed about some of the important FAQs pertaining to the recent amendments made for real estate sector given vide Circular No. 354/32/2019-TRU dated 07.05.2019. In the present update, we seek to discuss some more clarifications issued by the aforementioned circular.
Question no. 17:Someone booked a flat from XYZ Developers in June, 2018. As of 31-03-2019, he had paid 40 % of the value of the flat. What shall be the GST rate applicable on the remaining portion of value of the flat?
Answer:GST on the remaining portion of the value of flat payable to the promoter on or after 01-04-2019 as per the contract between the promoter and buyer shall be payable at effective rate of 1% or 5%, subject to the condition that the builder has not exercised the option to pay tax on construction of apartments at the old rates of 12% or 18%. If the XYZ developer exercises option to continue to pay tax at old effective rate of 8% or 12% by 10th May, 2019, then GST has to be paid @ 8% or 12% on remaining portion of the value of the flat; in such cases, the promoter would be entitled to permissible credit of input taxes and, as such, the price that he charges from the buyer should appropriately reflect this credit.
 
The above clarification indicates that GST is to be charged by the developer as per statutory provisions in force irrespective of the agreement entered into by the developer and the buyer.
 
Question No. 18:I am a beneficiary of PMAY- CLSS and carpet area of my house being constructed in an ongoing project is 150 sqm. Am I eligible for new rate of 1% on same?
 
Answer: You are eligible for new GST rate of 1%, subject to the condition that the developer-promoter with whom you have booked the house has not exercised option to pay tax on construction of apartments at the old rate of 8%.
 
The above clarification supports the view taken by us in our GST Update on Real Estate Sector Part-5 wherein we had mentioned that the definition of ‘affordable residential apartment’ given in the notification no. 03/2019-Central Tax (Rate) dated 29.03.2019 includes apartment being constructed in an ongoing project under any of the specified housing schemes, in respect of which promoter has not exercised option to pay central tax on construction of such apartments at the old rates. Consequently, apartments constructed under any of the specified housing schemes of the government such as Credit Linked Subsidy Scheme with respect to an ongoing project will be eligible for concessional GST rate of 1% applicable for affordable residential apartments irrespective of the fact that the said apartments do not satisfy the criteria of carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. However, after amendment made vide notification no. 03/2019-Central Tax (Rate) dated 29.03.2019, the commencement of new project under any of the specified housing schemes of the government like Pradhan Mantri Awaas Yojana/Credit Linked Subsidy Scheme would not be eligible for benefit of concessional GST rate of 1% unless it satisfies the criteria of affordable residential apartment being carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. Therefore, the benefit of concessional GST rate of 1% is admissible for apartments constructed under specified housing schemes only for ongoing projects even if the criteria of carpet area and consideration is not satisfied.
The other important questions will be discussed in our next update.
This is solely for the educational purpose.
You can reach us at www.capradeepjain.com, at our facebook page on
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21
 
 GST UPDATE ON FAQ’S RELEASED ON REAL ESTATE AMENDMENTS PART-11:-
 
In earlier update, we have discussed about some of the important FAQs pertaining to the recent amendments made for real estate sector given vide Circular No. 354/32/2019-TRU dated 07.05.2019. In the present update, we seek to discuss some more clarifications issued by the aforementioned circular.
Question no. 17:Someone booked a flat from XYZ Developers in June, 2018. As of 31-03-2019, he had paid 40 % of the value of the flat. What shall be the GST rate applicable on the remaining portion of value of the flat?
Answer:GST on the remaining portion of the value of flat payable to the promoter on or after 01-04-2019 as per the contract between the promoter and buyer shall be payable at effective rate of 1% or 5%, subject to the condition that the builder has not exercised the option to pay tax on construction of apartments at the old rates of 12% or 18%. If the XYZ developer exercises option to continue to pay tax at old effective rate of 8% or 12% by 10th May, 2019, then GST has to be paid @ 8% or 12% on remaining portion of the value of the flat; in such cases, the promoter would be entitled to permissible credit of input taxes and, as such, the price that he charges from the buyer should appropriately reflect this credit.
 
The above clarification indicates that GST is to be charged by the developer as per statutory provisions in force irrespective of the agreement entered into by the developer and the buyer.
 
Question No. 18:I am a beneficiary of PMAY- CLSS and carpet area of my house being constructed in an ongoing project is 150 sqm. Am I eligible for new rate of 1% on same?
 
Answer: You are eligible for new GST rate of 1%, subject to the condition that the developer-promoter with whom you have booked the house has not exercised option to pay tax on construction of apartments at the old rate of 8%.
 
The above clarification supports the view taken by us in our GST Update on Real Estate Sector Part-5 wherein we had mentioned that the definition of ‘affordable residential apartment’ given in the notification no. 03/2019-Central Tax (Rate) dated 29.03.2019 includes apartment being constructed in an ongoing project under any of the specified housing schemes, in respect of which promoter has not exercised option to pay central tax on construction of such apartments at the old rates. Consequently, apartments constructed under any of the specified housing schemes of the government such as Credit Linked Subsidy Scheme with respect to an ongoing project will be eligible for concessional GST rate of 1% applicable for affordable residential apartments irrespective of the fact that the said apartments do not satisfy the criteria of carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. However, after amendment made vide notification no. 03/2019-Central Tax (Rate) dated 29.03.2019, the commencement of new project under any of the specified housing schemes of the government like Pradhan Mantri Awaas Yojana/Credit Linked Subsidy Scheme would not be eligible for benefit of concessional GST rate of 1% unless it satisfies the criteria of affordable residential apartment being carpet area of 60/90 square meters and consideration upto Rs. 45 Lakhs. Therefore, the benefit of concessional GST rate of 1% is admissible for apartments constructed under specified housing schemes only for ongoing projects even if the criteria of carpet area and consideration is not satisfied.
The other important questions will be discussed in our next update.
This is solely for the educational purpose.
You can reach us at www.capradeepjain.com, at our facebook page on
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21
 
 

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