Notification on Reverse Charge Basis for Promoters in Real Estate Projects

Central Government, under CGST Act, 2017, issues notification for reverse charge basis. Registered promoters receiving goods or services from unregistered suppliers are liable to pay tax.

Categories of supplies covered include shortfall from minimum purchase requirements for construction projects. Promoters are responsible for paying tax on goods like cement and capital goods under specified conditions.

Definitions provided for terms like "promoter," "project," and "Residential Real Estate Project (RREP)." 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.