Important Keyword: F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC, Notification No. 15/2023-Central Tax (Rate), Section 54(3) CGST Act 2017, Notification no. 15/2017-Central Tax (Rate).
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[F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 19th October, 2023
Notification No. 15/2023 - Central Tax (Rate): Seeks to amend Notification No 15/2017- Central Tax (Rate) dated 28.06.2017.
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by sub-section (3) of section 54 of the CGST Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 15/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 694(E), dated the 28th June, 2017, namely:-
In the said notification, in opening paragraph , for the words, brackets, letters and figures “specified in sub- item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act”, the words, “of construction of a complex, building or a part thereof, intended for sale to a buyer, wholly or partly, where the amount charged from the recipient of service includes the value of land or undivided share of land, as the case may be, except where the entire consideration has been received after issuance of completion certificate , where required , by the competent authority or after its first occupation , whichever is earlier”, shall be substituted.
2. This notification shall come into force with effect from the 20th October, 2023.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: - The principal notification no. 15/2017-Central Tax (Rate) dated the 28th June,2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 694(E),dated the 28th June, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 15/2023 – Central Tax (Rate)
Q1: What does Notification No. 15/2023 – Central Tax (Rate) update?
Answer:
This notification amends the wording in Notification No. 15/2017-CT (Rate) by replacing the phrase related to “Schedule II” with a new definition concerning construction services sold to a buyer, where land value is included, except when the entire amount is received after the completion certificate or first occupation.
Q2: When does this notification come into effect?
Answer:
The amendment comes into force from 🗓️ 20th October 2023.
Q3: Why was the reference to “sub-item (b) of item 5 of Schedule II” replaced?
Answer:
To eliminate ambiguity and provide clarity on GST treatment for constructions sold partly or wholly before obtaining a completion certificate or first occupation.
Q4: What is the significance of land or undivided share of land in this context?
Answer:
The inclusion of land value in the total consideration affects how GST is calculated. This notification ensures that GST is only excluded when the full payment is made post-completion certificate or first occupation.
Q5: Who benefits from this amendment?
Answer:
🏗️ Builders and real estate developers who receive partial payments before project completion must now reassess their GST applicability. Buyers also gain clarity on when GST applies.
Q6: Does this impact my GST return filing if I’m in real estate?
Answer:
Yes! If you're engaged in selling under-construction property, this update could affect your GSTR reporting. For professional help, visit: https://finodha.in/gst-return-filing/
Q7: How can I determine if GST applies to my construction sale?
Answer:
Evaluate when payment was received. If it was before completion certification or first occupation, GST applies. Otherwise, it may be exempt under the updated rule.
Q8: Where can I get professional assistance to comply with this change?
Answer:
📞 Consult a GST professional through www.Finodha.in or directly access services for GST Registration here: https://finodha.in/online-gst-registration/
Q9: What if I have received part of the amount before and part after the completion certificate?
Answer:
In such cases, GST applies to the portion received before completion/occupation. Accurate record-keeping and return filing are essential. For compliance: https://finodha.in/gst-compliance/
Q10: Is this change retrospective or prospective?
Answer:
The amendment is prospective and applies to transactions from 20th October 2023 onward.
🧩 Summary:
Notification No. 15/2023 – Central Tax (Rate) refines the GST treatment for construction services involving land by focusing on payment timelines and certification. It ensures GST does not apply when full consideration is post-completion—providing clarity for developers and buyers alike.
📌 If you are in real estate or construction, consult a GST expert from www.Finodha.in to ensure seamless compliance.
Download PDF: Notification No. 15/2023 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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