Question ID :
As per notification no.3/2019 (Central Tax - Rate), new rate of GST has been prescribed. This applies to a "promoter". As per this notification, the meaning of promoter is the same as defined under RERA. Sec.2(zk) defines the term promoter.
As per the "explanaion" given at the end of the sec.2(zk), if the person who construct the apartment & the person who sells the apartment are different, both are treated as "promoter" for purpose of RERA.
This means a person who is acting as "contractor" for the developers also become a promoter & is covered by notification no.3/2019. Hence, I feel even the "contractor" has to charge 1% or 5% GST without ITC.
However, I find the said notification has entry (v) providing for 12% GST for pure “contractor” who renders service to a promoters. There appears to be conflict of meanings.
Experts please give your comments.
Apr 17, 2019