Notification No. 09/2019 – Integrated Tax (Rate) Explained

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Notification No. 09/2019 - Integrated Tax (Rate): To amend notification No. 8/ 2017- Integrated Tax (Rate) so as to extend the last date for exercising the option by promoters to pay tax at the old rates of 12%/ 8% with ITC

GST: [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-sections (1), (3) and (4) of section 5, subsection (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15, subsection (1) of section 16 and 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 further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- Integrated Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28^th June, 2017, namely:-

In the said notification, -

in the Table, against serial number 3, in items (ie) and (if), in the entries in column (5), for the figures and letters “10^th ”, wherever they occur, the figures and letters “20^th ” shall be substituted;

in Annexure IV, for the figures and letters “10^th ”, at both the places where they occur, the figures and letters “20^th” shall be substituted.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: - The principal notification No. 8/2017 - Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28th June, 2017 and was last amended by notification No. 3/2019-Integrated Tax (Rate), dated the 29^th March, 2019 vide number G.S.R. 256 (E), dated the 29^th March, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 09/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 09/2019 – Integrated Tax (Rate)?

Answer:
It is a GST notification that extends the deadline for real estate promoters to opt for old GST rates (12%/8%) with ITC for ongoing projects by amending Notification No. 08/2017.

Q2: Who is affected by this notification?

Answer:
Builders
Real estate developers
Promoters of ongoing residential or commercial projects
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Q3: What was the earlier deadline and the revised deadline?

Answer:
Earlier deadline: 10 May 2019
Revised deadline: 20 May 2019

Q4: Which GST rates are covered under this option?

Answer:
12% – Commercial apartments
8% – Affordable residential housing
Both with ITC, unlike the new regime.

Q5: What happens if the promoter fails to exercise the option?

Answer:
The project automatically shifts to the new GST rates (5% or 1%) without ITC, which can increase project costs.
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Q6: Is this notification applicable to CGST also?

Answer:
Yes. It works in parallel with CGST notifications under Section 148 of the CGST Act, ensuring uniform treatment.

Q7: Which legal sections empower this notification?

Answer:
Key sections include:
Section 5 & 6 of IGST Act
Section 15(5), 16 & 148 of CGST Act
Section 20 (application of CGST provisions to IGST)

Q8: Does this affect new projects launched after April 2019?

Answer:
❌ No. This notification applies only to ongoing projects as on 31 March 2019.

Q9: Is ITC allowed under the new GST regime?

Answer:
❌ No. ITC is not available under the new 5%/1% real estate GST regime.

Q10: Can promoters revise the option once exercised?

Answer:
❌ No. Once selected, the option is final and irreversible.

Q11: Does this notification apply to interstate supplies?

Answer:
✅ Yes. Since it is issued under the IGST Act, it governs interstate real estate supplies.

Q12: How does this notification benefit developers?

Answer:
It provides:
More time for decision-making
Better tax planning
Reduced risk of compliance errors
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Q13: Are homebuyers impacted by this notification?

Answer:
Indirectly, yes. Choosing old rates with ITC can lower embedded costs, potentially reducing prices.

Q14: What documents should promoters maintain?

Answer:
Option declaration
Project classification
ITC calculations
GST returns
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