If an affordable housing scheme eligible customer (i.e., 1% tax), is not interested or could not satisfy 80% gst purchases condition, can he opt for 5% scheme. He took registration in April, 19 and took advances during 2019-20 and done flat registrations in Jan, 20. He is filing GST returns now. Can he opt for 5% scheme, even though he is eligible for 1% scheme, as he did not maintain purchase bills information.

Reply—A promoter shall purchase at least eighty percent of the value of input and input services, from registered suppliers. For calculating this threshold, the value of services by way of grant of development rights, long term lease of land, floor space index, or the value of electricity, high speed diesel, motor spirit and natural gas used in construction of residential apartments in a project shall be excluded.

Condition of purchase of 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) from registered persons applicable to construction of residential apartments in a project which commences on or after 01-04-2019 where rarte of tax 1% or 5% as the case may be. Thus condition of 80% purchases from registered person is also applicable where rate of tax is 5%

Promoter has to pay GST @ 18% on reverse charge basis on all such inward supplies (to the extent short of 80% of inward supplies from registered supplier) except cement on which tax has to be paid (by the promoter on reverse charge basis) at the applicable rate, which at present is 28%.