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Realtors seek clarity on GST exemption on development rights 

Realtors seek clarity on GST exemption on development rights 

Mumbai: Realty developers are seeking clarity on recent exemption offered from the goods & services tax (GST) levied on development rights, including transferable development rights (TDRs), development rights certificates (DRCs) and joint development agreements (JDAs).

Realtors’ body, the National Real Estate Development Council (NAREDCO), has written to the Ministry of Housing and Urban Affairs seeking clarity on this.

Last Sunday, the GST Council proposed that intermediate tax on development rights will be exempted only for such residential projects on which GST is payable.

The government decided to more than halve the GST rates for under-construction projects to 5% from 12%. The GST Council removed the input tax credit, while GST on affordable housing was reduced to a marginal 1% along with expanding the definition of such homes. Ready properties that have received occupancy certificate (OC) do not attract GST.

“What if some units are being sold after the project is completed? Being a completed project that has already received an occupation certificate, it will not attract GST. Will the JDA or TDRs used in this project still attract intermediate tax? We need to get clarity on this,” said Niranjan Hiranandani, national president, NARDECO.

The ministry has already announced that details of this scheme will be worked out by an officers committee and will be approved by the GST Council in a meeting to be called specifically for this purpose soon.

As the details of the scheme are yet to be worked out by an officers’ committee, the developers’ body has sought to make a representation to avoid confusions or litigations later on. NAREDCO is of the view that the condition to be fulfilled to receive the tax exemption — “only for such residential projects on which GST is payable” — may lead to litigations.

In its letter to the ministry earlier this week, the developers’ body has cited instances that can lead to confusion and litigations. These examples include that of a residential project with convenience and retail shops, smart and integrated townships tagged as mixed-use development, and sale of residential units post completion of the project.

The NAREDCO representation is that the wording should be: “Tax on development rights, such as TDR/ JDA, long-term lease (premium), FSI shall be exempted”. Effectively, there should be no levying of ‘intermediate tax’ and the exemption should not be restricted to just ‘residential property’, but to all segments and types of property including commercial.

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How to change or update e-mail, phone number in GST system

How to change or update e-mail, phone number in GST system

The government has introduced a new system to allow taxpayers to update email and mobile number in the GST GST PortalSystem. This was introduced as many have complained that “the intermediaries who were authorized by them to apply for registration on their behalf had used their own email and mobile number during the process”, the Finance Ministry said in a press release today.

The email and mobile number can be updated by the concerned Jurisdictional tax authority of the taxpayer as per the following procedure:

  • The taxpayer is required to approach the concerned jurisdictional Tax Officer to get the password for the GSTIN allotted to the business.
  • Jurisdiction can be checked through Search Taxpayer option available on,. Allotted jurisdiction is displayed in red text
  • The taxpayer would be required to provide valid documents to the tax officer as proof of his/her identity and to validate the business details related to his GSTIN.
  • Tax officer will check if the said person is added as a Stakeholder or Authorized Signatory for that GSTIN in the system.
  • Tax officer will upload necessary proof on the GST Portal in support to authenticate the activity.
  • Tax officer will enter the new email address and mobile phone number provided by the Taxpayer.
  • After upload of the document, Tax officer will reset the password for the GSTIN in the system.
  • Username and Temporary password reset will be communicated to the email address as entered by the Tax Officer.
  • The taxpayer needs to login on GST Portal using the First time login link.
  • After first time login with the Username and Temporary password that was emailed to him, system would prompt the taxpayer to change username and password. The said username and password can now be used by the taxpayer.
Source: The Economic Times
Finance Ministry modifies cash management system to include post-GST changes

Finance Ministry modifies cash management system to include post-GST changes

Finance Ministry modifies cash management system to include post-GST changes

The finance ministry has modified the cash management system of the Central government to incorporate the change in date of tax receipts arising out of the new indirect tax regime of the Goods and Services Tax (GST). In an office memorandum, the finance ministry has asked all financial advisers of all departments and ministries to send a monthly/quarterly expenditure plan to the Budget division of the ministry within two weeks of passage of their detailed demand for grants in Parliament.

In line with the new dates for GST inflows, the finance ministry has asked other ministries/departments to ensure that big releases of Rs 200-2,000 crore are kept between 21st and 25th of a month to “take advantage of GST inflows”. Earlier, the range of dates for such releases was kept between 8th and 21st of a month.

The finance ministry has also asked other departments/ministries to keep bulk expenditure items of over Rs 2,000 crore to be timed in the last month of each quarter to utilise the direct tax inflows in June, September, December and March. “The releases (more than Rs 2,000 crore) may be kept within 17th and 25th in these months,” the memorandum said. Prior permission from Budget division of finance ministry shall be a prerequisite for any single payment release in excess of Rs 5,000 crore, it said.

The finance ministry said that monthly/quarterly expenditure plan form the basis of cash forecast and preparation of indicative calendar for government borrowings. “Deviations from monthly/quarterly expenditure plan may result into distortions in the cash planning by Government of India with multiple negative implications including increased cost of borrowing and hence would be viewed seriously,” it said.

The monthly expenditure plan would form the basis of quarterly expenditure plan and departments/ministries will not be allowed to release payment beyond quarterly expenditure plan (equal to sum of monthly expenditure plans within that quarter) without prior consent of the Budget division. “Practice of expenditure beyond quarterly expenditure plan without prior approval of Secretary (Expenditure) would be viewed adversely,” it said.

Savings, if any, incurred during quarterly expenditure plan would not be available for automatic carry forward to the next quarter, without revalidation of such savings by the Budget division for the next quarter through modification in quarterly expenditure plan, it said.

Not more than 33 per cent and 15 per cent of expenditure of Budget estimates shall be permissible respectively in the last quarter and last month of the financial year. “The restriction shall be observed both scheme-wise as well as for Demand for Grants as whole,” it said.

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Source :  The Indian Express