Time limit for transitioning pre - GST credit

- Section 140 of CGST Act was amended (vide Finance Act 2020) with retrospective effect from 1 July 2017 to prescribe the time limit for filing the relevant forms and availing pre - GST input tax credit

- Now, the effective date of the amendment is notified - Amendment is being made effective from 18 May 2020

- Recently, Delhi HC held that the time limit prescribed under Rule 117 is directory and not mandatory. However, the HC has not commented on the effect of retrospective amendment to Section 140 of CGST Act.

- Pursuant to the amendment, any fresh application filed/ pre - GST credit transitioned to credit ledger beyond the time limit under Rule 117  will be disputed by the department

- This is likely to open another round of litigation

- While the Government is introducing various measures to boost liquidity, restricting pre - GST credit which has been rightfully availed by taxpayers will only affect the working capital

- In these difficult times, Government should consider framing a scheme to allow pre - GST credit as another measure to boost liquidity

TNRERA - Extension of time period for all registered projects

-Tamilnadu Real Estate Regulatory Authority (TNRERA) has issued a Circular dated 06.04.2020 which provides for an automatic extension for all projects that are registered and valid as on 1 February 2020.

- The extension is provided upto 30 June 2020.

- All compliances under the TNRERA Act and the Rules which are falling due between March 2020 and June 2020 are extended upto September 2020.

- No extension is provided for compliance falling due in June/ July/ August under the TNRERA Act/ Rules.

- Refer circuclar below

(In case of any queries please feel free to send a mail to: muthukumaran.adv@gmail.com)

Stamp duty only on UDS; Building Value not to be included (For first sale)

Real Estate Update (Tamilnadu):

In projects where undivided share or land (UDS) is transferred to the buyer by the owner and separate agreement is entered for construction -

                - Inspector General of Registration, Tamilnadu has clarified that stamp duty shall not be                         demanded on the value of building and shall be restricted only to sale of UDS

                - This is applicable for first sale of UDS including projects where completion certificate is                    issued by the competent authority

                - No bar on registering separate agreement for construction between the buyer and builder

(Reference Letter No. 11672/C2/2020 dated 11 May 2020)