Ministry of Finance(MoF) vide Instruction No.3/2/2020-GST dated 24th June 2020 clarified the Subject Matter of "Payment of GST by Real Estate Promoter/Developer supplying construction of residential apartment etc, on the shortfall value of inward supplies from registered supplier at the end of the financial year" . To get a grasp of the whole matter, let us rewind back and understand an early Notification , wherein the Central Board of Indirect Taxes & Customs (CBIC) prescribed in one of the conditions of notification that w.e.f 1 April 2019, At least Eighty Percent of the value of inputs and input services(other than services by way of grant of development rights, long term lease of land or Floor Space Index, electricity, high-speed diesel, motor spirit, natural gas), used in supplying of construction service, shall be received by the promoter/developer from registered supplier only. In the case of the shortfall from the said threshold of 80 per cent, the promoter/devel...
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