In notification number 15/2023 – Central Tax (Rate), the Central Board of Indirect Taxes and Customs (CBIC) has introduced changes to the definition of Taxable Construction Services for the sale of buildings in accordance with the recommendations of the Goods and Services Tax (GST) Council. These changes exclude situations where full payment is received after the issuance of the completion certificate or initial occupation. This notification shall come into force on 20th October 2023.
In accordance with the authority granted under subsection (3) of section 54 of the Central Goods and Services Tax Act, 2017, the Central Government, having determined that it is essential in the public interest to do so, and based on the recommendations of the Council, has enacted the subsequent amendments in the notification issued by the Government of India. This initial notification was originally released by the Ministry of Finance (Department of Revenue) as No. 15/2017-Central Tax (Rate) on June 28, 2017, and published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), under reference number G.S.R. 694(E), also dated June 28, 2017.
“In the said notification, in opening paragraph , for the words, brackets, letters and figures “specified in subitem (b) of item 5 of Schedule II of the Central Goods and Services Tax Act”, the words, “of construction of a complex, building or a part thereof, intended for sale to a buyer, wholly or partly, where the amount charged from the recipient of service includes the value of land or undivided share of land, as the case may be, except where the entire consideration has been received after issuance of completion certificate , where required , by the competent authority or after its first occupation , whichever is earlier”, shall be substituted.”
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