Important Keyword: Notification 08/2019 IGST, IGST real estate GST, RCM promoter GST, GST on unregistered suppliers, real estate GST IGST rate,
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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 - Integrated Tax (Rate): Seeks to amend notification No. 1/2017- Integrated Tax (Rate) so as to notify IGST 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 5 of the IGST Act, 2017 (13 of 2017) read with 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- Integrated 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. 666 (E), dated the 28th June, 2017, namely:-
In the said notification, in Schedule III - 18%, 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 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), as prescribed in notification No. 07 / 2019- Integrated 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. 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-Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E), dated the 28th June, 2017 and last amended by notification No. 25/2018- Integrated 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. 1264(E), dated the 31st December, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 08/2019 - Integrated Tax (Rate)
Q1: What is Notification No. 08/2019 – Integrated Tax (Rate)?
Answer:
It is a GST notification that amends IGST rates for certain goods supplied to real estate promoters. It introduces a new entry (Serial No. 452Q) under Schedule III (18%) for goods supplied by unregistered persons to promoters, where tax is payable by the promoter under RCM.
Q2: From which date is Notification No. 08/2019 applicable?
Answer:
The notification is effective from 1 April 2019, aligning with the implementation of the revised GST framework for the real estate sector.
Q3: Who is treated as a “promoter” under this notification?
Answer:
The term “promoter” has the same meaning as defined in Section 2(zk) of the Real Estate (Regulation and Development) Act, 2016 (RERA). This includes builders and developers responsible for developing or selling real estate projects.
Q4: What types of projects are covered under this notification?
Answer:
The notification applies to:
Real Estate Projects (REP)
Residential Real Estate Projects (RREP)
RREP means a project where commercial carpet area does not exceed 15% of the total carpet area.
Q5: What goods are covered under the new IGST entry?
Answer:
All goods except:
Cement (Chapter 2523)
Capital goods
These goods must be supplied by an unregistered person to a promoter for construction purposes.
Q6: What is the applicable IGST rate under Notification No. 08/2019?
Answer:
The applicable IGST rate is 18%, as inserted under Schedule III of Notification No. 01/2017 – Integrated Tax (Rate).
Q7: Who is liable to pay IGST under this notification?
Answer:
The promoter is liable to pay IGST under Reverse Charge Mechanism, as per Section 5(4) of the IGST Act, 2017.
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Q8: Why are cement and capital goods excluded?
Answer:
Cement and capital goods are taxed separately under other GST provisions and notifications. Cement continues to attract higher GST rates, and capital goods have distinct ITC implications.
Q9: Does this apply even if goods fall under a different tariff heading?
Answer:
Yes ✅
The notification clearly states that this entry applies even if goods are covered under a more specific tariff heading elsewhere, provided all conditions are met.
Q10: Can promoters claim Input Tax Credit (ITC) on such IGST?
Answer:
ITC availability depends on whether the promoter has opted for new GST rates (without ITC) or old rates (with ITC). This must be evaluated carefully.
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Q11: How does this notification impact unregistered suppliers?
Answer:
Unregistered suppliers do not charge IGST. The tax burden shifts entirely to the promoter under RCM, simplifying compliance for small vendors.
Q12: Is GST registration mandatory for promoters receiving such supplies?
Answer:
Yes. Promoters must be GST registered to discharge tax liability under RCM.
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Q13: What happens if promoters fail to pay IGST under RCM?
Answer:
Non-payment may result in:
Interest under Section 50 of CGST Act
Penalties under Section 122
Denial of ITC (where applicable)
Q14: How does this notification help the real estate sector?
Answer:
It ensures:
Better tax tracking
Reduced misuse of unregistered suppliers
Uniform taxation for construction inputs
Alignment with the new real estate GST regime
Q15: What records should promoters maintain for compliance?
Answer:
Promoters should maintain:
Supplier invoices
Self-invoices under RCM
Payment proofs
Proper reporting in GSTR-3B
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✅ Conclusion & Call to Action
Notification No. 08/2019 – Integrated Tax (Rate) is a cornerstone notification for India’s real estate GST framework. It shifts responsibility to promoters, brings clarity to IGST rates, and ensures stronger compliance under RCM.
Download PDF: Notification No. 08/2019 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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