Special Class of Registered Person under RCM, CBIC notifies Specified class of Registered Person liable to pay tax under RCM u/s 9(4) of the CGST Act, 2017 w.e.f. April 01, 2019
The Central Board of Indirect Taxes and Customs vide Notification No. 07/2019 – Central Tax (Rate) dated March 29, 2019 notified the specified class of registered person who will receive the supply of goods or services or both from an unregistered supplier will be liable to pay tax under Reverse Charge Mechanism for being recipient of such goods or services or both.
Special Class of Registered Person under RCM
The Liability to be pay the tax on Reverse Charge basis by the recipient under the below mention list of ” Goods ” or “Services” ,with effect from April 01, 2019.
|
S. No. |
Category of supply of goods and services |
Recipient of goods or services |
|
(1) |
(2) |
(3) |
|
1 |
Supply of such goods and services or both [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI)] which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended. |
Promoter |
|
2 |
Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended. |
Promoter |
|
3 |
Capital goods falling under any chapter in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed for items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended. |
Promoter |
Special Class of Registered Person under RCM
Explanation.-For the purpose of this notification, –
(i) the term “promoter” shall have the same meaning as assigned to it in in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016(16 of 2016);
(ii) “project” shall mean a Real Estate Project (REP)or a Residential Real Estate Project (RREP);
(iii) 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);
(iv) “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.
(v) the term “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 fromthe1stof April, 2019.