Tax Liability for Real Estate Promoters

New notification under section 20 of the IGST Act, 2017, delineates tax obligations for registered promoters. Promoters receiving development rights or Floor Space Index (FSI) for projects after April 1, 2019, subject to integrated tax on consideration.

Tax liabilities include construction services for commercial or residential apartments, long-term land leases, and related charges.

Tax responsibility arises upon project completion certification or first occupation, whichever is earlier.

Definitions provided for crucial terms like "apartment," "promoter," "project," "Real Estate Project (REP)," "Residential Real Estate Project (RREP)," and "floor space index (FSI)."

Tax on services under reverse charge basis as per Notification No. 10/2017- Integrated Tax (Rate). Effective from April 1, 2019, directed by Pramod Kumar, Deputy Secretary to the Government of India.