Important Keyword: GST Notification 08/2019, real estate GST India, promoter RCM GST, construction GST rate, RREP GST rules,
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Table of Contents
[F. No. 354/32/2019- TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 29th March, 2019
Notification No. 08/2019 - Central Tax (Rate): Seeks to amend notification No. 1/2017- Central Tax (Rate) so as to notify CGST rate of certain goods as recommended by Goods and Services Tax Council for real estate sector.
GST: [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 sub-section (1) of section 9 and sub- section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-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. 673(E), dated the 28th June, 2017, namely:-
In the said notification, in Schedule III - 9%, after serial number 452P in column (1) and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| (1) | (2) | (3) |
| “452Q | Any chapter | Supply of any goods other than capital goods and cement falling under chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975), by an unregistered person to a promoter for construction of the project on which tax is payable by the promoter as recipient of goods under sub- section 4 of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), as prescribed in notification No. 07 / 2019- Central Tax (Rate), dated 29th March, 2019, published in Gazette of India vide G.S.R. No. _, dated 29th March, 2019 Explanation. For the purpose of this entry,– 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). “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP). 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). “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) This entry is to be taken to apply to all goods which satisfy the conditions prescribed herein, even though they may be covered by a more specific chapter/ heading/ sub heading or tariff item elsewhere in this notification. |
2. This notification shall come into force with effect from the 1st of April, 2019.
(Pramod Kumar)
Deputy Secretary to the
Government of India
Note: - The principal notification No.1/2017-Central Tax (Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28thJune, 2017 and last amended by notification No. 24/ 2018- Central Tax (Rate), dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1261 (E), dated the 31st December, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 08/2019 - Central Tax (Rate)
Q1: What is Notification No. 08/2019 – Central Tax (Rate)?
Answer:
It amends Notification No. 1/2017 – Central Tax (Rate) to prescribe 9% CGST on goods supplied by unregistered persons to real estate promoters, where GST is payable by the promoter under RCM, effective 1 April 2019.
Q2: From which date is Notification No. 08/2019 applicable?
Answer:
It is applicable from 1 April 2019.
Q3: Which goods are covered under this notification?
Answer:
All goods except:
Capital goods
Cement (HSN 2523)
supplied by an unregistered person to a promoter for construction of REP/RREP.
Q4: Who is liable to pay GST on such supplies?
Answer:
The promoter is liable to pay GST under Reverse Charge Mechanism (RCM) as per Section 9(4) of the CGST Act.
Q5: What is the applicable GST rate under this entry?
Answer:
CGST: 9%
Total GST: 18%
Q6: Does this apply to purchases from registered suppliers?
Answer:
No ❌. This entry specifically applies only to supplies from unregistered persons.
Q7: Why are cement and capital goods excluded?
Answer:
Cement and capital goods are separately regulated under real estate GST rules and attract different compliance requirements.
Q8: Can you explain with a real-life example?
Answer:
📌 Example:
A builder buys bricks and sand from a local unregistered supplier for a residential project.
👉 The builder (promoter) must pay 18% GST under RCM on such purchases.
Q9: How does this affect GST returns?
Answer:
Promoters must:
Report RCM liability in GSTR-3B, and
Disclose inward supplies liable to RCM.
👉 Ensure correct reporting with Finodha GST Return Filing:
🔗 https://finodha.in/gst-return-filing/
Q10: Is Input Tax Credit (ITC) available on such RCM payments?
Answer:
ITC availability depends on:
Project type (RREP/REP), and
Whether the promoter has opted for new or old real estate GST scheme.
Q11: Does this notification apply to commercial real estate projects?
Answer:
Yes ✅, if the project qualifies as REP under RERA definitions.
Q12: Is this notification linked with Notification No. 07/2019?
Answer:
Yes. Notification No. 08/2019 works in conjunction with Notification No. 07/2019 – Central Tax (Rate), which prescribes the RCM framework for promoters.
Q13: What happens if GST is not paid under RCM?
Answer:
Non-payment may lead to:
Demand of tax
Interest
Penalties under GST law
Q14: Who should carefully review Notification No. 08/2019?
Answer:
Real estate promoters
Builders & developers
Project accountants
GST consultants handling construction sector
Q15: How can Finodha help real estate businesses?
Answer:
Finodha helps with:
RCM compliance review
Project-wise GST planning
Accurate GST return filing
Advisory on old vs new real estate GST scheme
👉 Consult Finodha GST Experts today:
🔗 https://finodha.in/gst-compliance/
Conclusion✅:
Notification No. 08/2019 – Central Tax (Rate) formalises GST treatment of unregistered purchases in real estate projects, ensuring tax certainty and plugging revenue leakage.
Download PDF: Notification No. 08/2019 - Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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