GST Amendment: Altered Taxation on Property Transactions

Scope Modification: G.S.R. (E) introduces changes in the Integrated Goods and Services Tax Act, 2017, specifically clause (xiii) of section 20. It pertains to modifications in the taxation of property transactions.

Amendment in Notification 12/2017-Integrated Tax (Rate): The amendment targets Notification 12/2017-Integrated Tax (Rate), dated June 28, 2017, outlined in G.S.R. 687(E).

Revised Definition: The opening paragraph undergoes a crucial change. The earlier reference to "specified in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act" is now replaced. It narrows down to cover construction services for a complex or building intended for sale, including the value of land, except in cases where the full consideration is received post the issuance of the completion certificate or after the property's first occupation, whichever is earlier.

Effective Date: The revised notification is set to be effective from October 20, 2023.

Issuing Authority: Rajeev Ranjan, Under Secretary to the Government of India, is the signatory.

Council Recommendations: The modifications align with the recommendations from the Council, aiming to streamline and clarify the taxation framework related to property transactions.

Principal Notification Background: Notification 12/2017-Integrated Tax (Rate) has been subject to amendments, and the current change is part of an ongoing process.

Note: Detailed information is available in the official notification G.S.R. (E).