Pankaj Rawat (GST Practitioner) 27 June 2020
AS PER INSTRUCTION NO. 3/2/2020 date : 24/6/20
One of the condition prescribed vide said notification is that atleast eighty per cent.
of value of input and input services, [other than services by way of grant of development
rights, long term lease of land or FSI, electricity, high speed diesel, motor spirit, natural
gas], used in supplying the construction service, shall be received by the promoter/developer
from registered supplier only. In case of shortfall from the said threshold of 80 per cent., the
promoter/developer shall pay the tax on the value of input and input services comprising
such shortfall in the manner as has been prescribed vide said notification. This tax shall be
paid through a prescribed form electronically on the common portal by end of the quarter
following the financial year. Accordingly for FY 2019-20, tax on such shortfall is to be paid
by the 30th June, 2020.
The issue referred by the trade has been examined. It has been decided that FORM
GST DRC-03, as already prescribed, shall be used for making the payment of such tax by
promoter/developer. Accordingly, person required to pay tax in accordance with the said
notification on the shortfall from threshold requirement of procuring input and input
services (below 80%) from registered person shall use the form DRC-03 to pay the tax
electronically on the common portal within the prescribed period.
Aditi Kaur (Practising CA) 28 June 2020
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