Notification on Liability to Pay Central Tax for Real Estate Promoters

Central Government, under CGST Act, 2017, notifies registered promoters for tax liability. Promoters receiving development rights or Floor Space Index (FSI) for construction projects liable to pay tax.

Tax arises on issuance of completion certificate or project's first occupation, whichever is earlier. Definitions provided for terms like "apartment," "promoter," "project," and "Residential Real Estate Project (RREP)."

Tax on certain services to be paid under reverse charge basis as per specified notification. Effective from April 1, 2019, the notification aims to regulate tax payments in real estate development.

Pramod Kumar, Deputy Secretary to the Government of India, issues the notification.