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Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 06/2019-Integrated Tax (Rate)
New Delhi, the 29th March, 2019
G.S.R......(E).- In exercise of the powers conferred by section 20 of the Integrated Goods
and Services Tax Act, 2017 (13 of 2017) read with section 148 of the Central Goods and
Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the
Council, hereby notifies the following classes of registered persons, namely:-
(i) a promoter who receives development rights or Floor Space Index (FSI) (including
additional FSI) on or after 1
st April, 2019 for construction of a project against
consideration payable or paid by him, wholly or partly, in the form of construction
service of commercial or residential apartments in the project or in any other form
including in cash;
(ii) a promoter, who receives long term lease of land on or after 1
st April, 2019 for
construction of residential apartments in a project against consideration payable or paid
by him, in the form of upfront amount (called as premium, salami, cost, price, development
charges or by any other name),
as the registered persons in whose case the liability to pay integrated tax on, -
(a) the consideration paid by him in the form of construction service of commercial or
residential apartments in the project, for supply of development rights or FSI (including
additional FSI);
(b) the monetary consideration paid by him, for supply of development rights or FSI (including
additional FSI) relatable to construction of residential apartments in project;
(c) the upfront amount (called as premium, salami, cost, price, development charges or by any
other name) paid by him for long term lease of land relatable to construction of residential
apartments in the project; and
(d) the supply of construction service by him against consideration in the form of development
rights or FSI(including additional FSI), -
shall arise on the date of issuance of completion certificate for the project, where required, by
the competent authority or on its first occupation, whichever is earlier.
2. Explanation:- For the purpose of this notification,-
(i) The term “apartment” shall have the same meaning as assigned to it in clause (e) of section 2
of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(ii) the term “promoter” shall have the same meaning as assigned to it in in clause (zk) of section
2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(iii) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate
Project (RREP);
(iv) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in in
clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of
2016);
(v) the term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area
of the commercial apartments is not more than 15 per cent. of the total carpet area of all the
apartments in the REP.
(vi) the term “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross
floor area) to the size of the piece of land upon which it is built.
(vii) Tax on services covered by sub-para (i) and (ii) of paragraph 1 above is required to be paid
under reverse charge basis in accordance with
notification No. 10/2017- Integrated Tax (Rate),
dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide GSR No. 685 (E), dated the 28th June, 2017, as amended.
3. This notification shall come into force with effect from the 1st day of April, 2019.
[F. No.354/32/2019-TRU]
(Pramod Kumar)
Deputy Secretary to the Government of India
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