Important Keyword: Notification No. 03/2021 - Union Territory Tax (Rate), GST 43rd Council Meeting, UTGST 2021 Amendments, GST Real Estate Liability, Section 148 CGST Act, Finodha GST Compliance, Union Territory GST Updates, Real Estate GST Notification 2021, GST Completion Certificate Rule,
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[F. No. 354/53/2021-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 2nd June, 2021
Notification No. 03/2021 - Union Territory Tax (Rate): Seeks to amend notification No. 06/2019- Union Territory Tax (Rate) so as to give effect to the recommendations made by GST Council in its 43rd meeting held on 28.05.2021.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, Hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.06/2019- Union Territory Tax (Rate), dated the 29th March, 2019, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 265(E), dated the 29thMarch, 2019, namely:- In the said notification, in the first paragraph,-
- for the words “in whose case the liability to”, the words “, who shall” shall be substituted;
- for the words “shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier”, the words “in a tax period not later than the tax period in which the date of issuance of the completion certificate for the project, where required, by the competent authority, or the date of its first occupation, whichever is earlier, falls” shall be substituted.
2. This notification shall come into force with effect from the 2nd day of June, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: -The principal notification No. 06/2019 - Union Territory Tax (Rate), dated the 29th March, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 265(E), dated the 29th March, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2021 - Union Territory Tax (Rate)
Q1: What is Notification No. 03/2021 - Union Territory Tax (Rate)?
Answer:
Notification No. 03/2021 - UTGST (Rate) amends Notification No. 06/2019 to refine the wording related to when GST liability arises for promoters in a real estate project.
In simple terms, it ensures that tax liability must be discharged no later than the tax period in which the completion certificate or first occupation occurs — whichever comes first.
This brings clarity and uniformity for real estate developers across Union Territories.
Q2: What does the amendment specify about tax liability?
Answer:
Earlier, liability was said to “arise on the date of issuance of completion certificate or first occupation”.
Now, it clearly states that tax must be paid “in a tax period not later than the tax period in which” the completion certificate or first occupation occurs.
This prevents delayed payments and aligns GST collection with actual completion milestones.
🧾 Example:
If a housing project in Chandigarh gets its completion certificate in October 2021, the promoter must pay applicable GST by the filing due date for October, not later.
Q3: Which laws empower this amendment?
Answer:
The notification draws power from:
- Section 21 of the Union Territory GST Act, 2017, and
- Section 148 of the Central Goods and Services Tax Act, 2017,
which allow the Central Government to prescribe special procedures for certain classes of taxpayers.
These provisions ensure the GST Council can introduce specific compliance rules for real estate promoters.
Q4: How does this notification impact real estate promoters and developers?
Answer:
Promoters and developers must now ensure that their GST liability aligns with the project’s completion stage.
Key impacts include:
✅ Timely recognition of tax liability.
✅ No deferred payments beyond the relevant tax period.
✅ Improved transparency in GST reporting.
Need help managing real estate GST? Get assistance from Finodha GST Experts.
Q5: What is the significance of the 43rd GST Council meeting?
Answer:
The 43rd GST Council Meeting (held on 28th May 2021) focused on simplifying real estate taxation, extending relief measures, and standardizing compliance timelines.
This amendment directly implements one of those recommendations, ensuring smoother compliance for builders operating under Joint Development Agreements (JDAs).
Q6: Who is affected by this notification?
Answer:
This notification applies to:
- Promoters or builders constructing real estate projects.
- Landowner-promoters in JDAs where development rights are exchanged for completed flats.
- Businesses operating in Union Territories under the UTGST framework.
🏗️ Example:
A landowner-promoter in Puducherry who receives constructed flats from a builder must now pay GST in the same tax period as project completion or first occupation.
Q7: How does this amendment improve compliance clarity?
Answer:
Previously, developers were uncertain about whether GST should be paid immediately upon completion or later.
Now, the rule explicitly mentions:
GST must be paid not later than the tax period of completion or first occupation.
This removes ambiguity and ensures uniform compliance across all Union Territories.
Q8: How can promoters adjust their GST reporting under this rule?
Answer:
Promoters should:
- Track the completion certificate or occupancy date.
- Record tax liability in the GSTR-3B of the same period.
- Update accounting systems to trigger GST entries automatically.
💼 Stay compliant using Finodha GST Return Filing.
Q9: Does this affect the tax rate or only the timing of payment?
Answer:
This notification does not change the tax rate.
It only clarifies the timing of GST payment — ensuring that liability is recognized promptly once a project is completed or occupied.
Q10: How does Section 148 of the CGST Act relate here?
Answer:
Section 148 empowers the government to specify special procedures for:
- Certain classes of registered persons, and
- Certain supplies or circumstances.
This amendment uses that power to regulate the timing of GST liability for promoters, avoiding any mismatch between project completion and tax payment.
Q11: What happens if a promoter delays payment beyond the prescribed tax period?
Answer:
Delayed payments can attract:
- Interest under Section 50 of the CGST Act.
- Penalties under Section 73 or 74 for non-payment or short payment.
Hence, timely filing of returns is crucial.
🚀 Avoid penalties with Finodha GST Compliance Services.
Q12: How should businesses reflect this change in GST filings?
Answer:
Businesses must:
- Update their tax software or ERP to capture liability during the correct tax period.
- Cross-verify completion certificate dates with the corresponding return period.
- Maintain documentation for GST audits.
Q13: Does this notification benefit buyers or homebuyers?
Answer:
Yes ✅
It indirectly benefits buyers by ensuring:
- Transparent tax accounting by developers.
- Avoidance of delayed or post-completion tax burden transfers.
In simple words, it makes the process more predictable for end consumers.
Q14: Is this notification applicable to all Indian states?
Answer:
No ❌
This amendment applies only to Union Territories under the Union Territory GST Act, 2017 — such as:
Delhi, Chandigarh, Ladakh, Puducherry, Andaman & Nicobar Islands, and others.
However, equivalent changes were mirrored in the CGST and SGST frameworks for the respective states.
Q15: Where can I get expert help for implementing this amendment?
Answer:
You can get professional GST support from Finodha, which offers:
🧾 Need tailored guidance? Consult a Finodha GST Expert today!
🏁 Conclusion
Notification No. 03/2021 - Union Territory Tax (Rate) streamlines GST compliance for the real estate sector, ensuring timely recognition of tax liability and greater transparency.
By linking liability to specific tax periods, it minimizes confusion, ensures accurate GST reporting, and supports fiscal accountability in the construction sector.
👉 Ensure your GST filings reflect this change. Start filing today with Finodha GST Return Filing.
Download PDF: Notification No. 03/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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