Amendment to Notification No. 8/2017- Integrated Tax (Rate)

The Central Government, exercising powers under the IGST Act, 2017, makes amendments to Notification No. 8/2017- Integrated Tax (Rate) to regulate taxation on various services, effective from April 1, 2019. Amendments encompass 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 IGST Act, 2017, read with relevant sections of the CGST Act, 2017.

Notable changes include modifications in the opening paragraph of the notification, specifying additional sub-sections and clauses. The table in the notification undergoes significant alterations, including the substitution and omission of certain items and entries, and the insertion of new items and entries.

Changes cover various aspects of construction services, such as construction of affordable residential apartments, residential apartments other than affordable ones, commercial apartments, composite works contract supply, and other construction services. Conditions and provisions are outlined for different types of construction projects, including ongoing projects and those commencing on or after April 1, 2019.

Provisions for payment of integrated tax, input tax credit, credit of input tax, and tax liability are specified for different scenarios and types of projects. Clarifications are provided regarding the determination of affordable residential apartments, valuation of services, and tax liability in specific situations.

By introducing these amendments, the government aims to streamline taxation policies related to construction services, ensuring clarity and compliance. (Note: Specific details of amendments have been outlined in the text.)