Page 66 - GSTL_2nd July 2020 _Vol 38_Part 1

C6 GST LAW TIMES [ Vol. 38
modified to this extent. It is requested that suitable trade notices may be issued
to publicize the contents of this circular.
7. Difficulty, if any, in the implementation of the above instructions
may please be brought to the notice of the Board. Hindi version would follow.
[C.B.I. & C. Circular No. 141/11/2020-GST, dated 24-6-2020]

Construction of Residential Apartments — Payment of GST
by real estate promoter/developer supplying
construction of residential apartment, etc., on the
shortfall value of inward supplies from registered
supplier at the end of the financial year — Clarification
Subject : Payment of GST by real estate promoter/developer supplying
construction of residential apartment etc, on the shortfall value of
inward supplies from registered supplier at the end of the financial year
- Regarding.
A revised GST rate has been prescribed, w.e.f. the 1st April, 2019 on the
supply of service by way of construction of residential apartment. Under this,
construction of affordable residential apartments attract GST at the rate of 1%
[without ITC] and other residential apartments attract GST at the rate of 5%
[without ITC]. [These rates have been prescribed vide Notification no. 11/2017-
Central Tax (Rate), dated 28-6-2017 as amended by Notification no. 3/2019-
Central Tax (Rate), dated 29-3-2019].
2. One of the condition prescribed vide said notification is that atleast
eighty per cent. of value of input and input services, [other than services by way
of grant of development rights, long term lease of land or FSI, electricity, high
speed diesel, motor spirit, natural gas], used in supplying the construction
service, shall be received by the promoter/developer from registered supplier
only. In case of shortfall from the said threshold of 80 per cent., the
promoter/developer shall pay the tax on the value of input and input services
comprising such shortfall in the manner as has been prescribed vide said
notification. This tax shall be paid through a prescribed form electronically on
the common portal by end of the quarter following the financial year.
Accordingly for FY 2019-20, tax on such shortfall is to be paid by the 30th June,
2020.
3. In the above context, requests have been received seeking details of
prescribed form on which the said tax amount has to be reported.
4. The issue referred by the trade has been examined. It has been
decided that FORM GST DRC-03, as already prescribed, shall be used for
making the payment of such tax by promoter/developer. Accordingly, person
required to pay tax in accordance with the said notification on the shortfall from
threshold requirement of procuring input and input services (below 80%) from
registered person shall use the form DRC-03 to pay the tax electronically on the
common portal within the prescribed period.
5. It is requested that suitable instructions may be issued by the
States/field formations of CBIC to advise the trade accordingly.
[C.B.I. & C. Instruction No. 3/2/2020-GST, dated 24-6-2020]
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