The Central Board of Indirect Taxes and Customs (“CBIC”) has issued a Notification No 05/2019 – Central Tax (Rate) dated March 29, 2019 which further amends Notification No.13/2017- Central Tax (Rate), dated June 28, 2017, in respect of Supply of services to be charged under section 9(3) of the CGST ACT, 2017 under reverse charge mechanism are as here under:-
(i) in the Table, after serial number 5A and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| S. No | Description of supply of Service | Supplier of service | Recipient of service |
| (1) | (2) | (3) | (4) |
| 5B |
Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter. |
Any person | Promoter |
| 5C |
Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. |
Any person | Promoter |
(ii) in the Explanation, after clause (h), the following clauses shall be inserted, namely: –
(i) The term “apartment” shall have the same meaning as assigned to it in clause (e) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(j) the term “promoter” shall have the same meaning as assigned to it in clause (zk) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).
(k) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
(l) “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).
(m) The term “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.
(n) “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.”.
This notification shall come into force with effect from April 01, 2019, further the same notification has been issued under IGST Act and UTGST Act as well.
The Complete Notification can be accessed at: http://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-5-2019-cgst-rate-english.pdf;jsessionid=9821DAD245449BD64617D9B768F5A2BC