As per Notification No.07/2019 -Central (Rate) dated 29th March 2019 Promoter will be have to pay GST under RCM as per Sec.9(4) from 01.04.2019 . There are some conditions as mentioned below
- 80% of total raw material must be purchased from registered person or dealer .
- In case of Cement purchase promoter will have to pay GST @28% separately under RCM if above said condition is not fulfilled .
- If any capital goods is purchased from unregistered person or dealer then GST will be paid at the as applicable under RCM (Reverse Charge Mechanism) . In this case above condition is not applicable . So if you purchase one machine or two machines from unregistered dealer then you will have to pay GST on total purchase .
Who will pay ? -
Promoter those are involved in Real Estate or Residential Real Estate business will pay GST on short fall in purchase before issuance of Completion Certificate .
Explanation : Total purchase = Rs.3,00,000/-
80 % of purchase (Excluding capital goods) = Rs. 2,40,000/-
Purchase from registered person/dealer = 13,0000/- Short fall in purchase= Rs. 1,10,000/-
Cement purchase = Rs. 65,000/- GST applicable @ 28% on cement
Other goods purchase = Rs 55,000/-
Rs. 1,10,000/-