Affordable housing works contract service qualifies for concessional GST treatment where units meet the statutory residential apartment criteria.

Works contract service for construction of dwelling units in a residential project falls within Entry No. 3(v)(da) of Notification No. 11/2017-Central Tax (Rate) where the units satisfy the statutory definition of affordable residential apartments and the project qualifies as an affordable housing project. The ruling links this treatment to carpet-area limits, project commencement before 31.03.2019, the applicable promoter option, and factual compliance such as supporting certification and booking status. On the facts found, the qualifying dwelling units met the statutory description, so the service supply was covered by the concessional notification entry, subject to the promoter not having opted for the alternative rate.

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Issues: Whether works contract service received for construction of dwelling units in the residential project qualifies for tax under Entry No. 3(v)(da) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, where the units satisfy the definition of affordable residential apartments and the project is an affordable housing project.

Analysis: Entry No. 3(v)(da) applies to works contract service for original work pertaining to low-cost houses in an affordable housing project. The expression "affordable residential apartment" under clause 4(xvi) is linked to carpet area, project commencement date, and the tax option exercised by the promoter. The project satisfied the conditions of an ongoing project, including commencement before 31.03.2019, supporting certification, and partial booking of units. The residential project also met the affordable housing project criterion in the infrastructure-status notification because the portion of dwelling units with carpet area up to 60 sqm constituted at least 50% of the relevant FAR/FSI. On the facts found, the relevant dwelling units in the project answered the statutory description of affordable residential apartments.

Conclusion: The works contract service for construction of the dwelling units that qualify as affordable residential apartments is taxable under Entry No. 3(v)(da), provided the promoter has not opted for the alternative rate under Entry No. 3(ie) or 3(if).

Final Conclusion: The ruling confirms concessional GST treatment for the qualifying residential units in the project, and the applicant's service supply falls within the specified notification entry to that extent.

Ratio Decidendi: Where a residential project satisfies the statutory definition of an affordable housing project and the constructed units meet the definition of affordable residential apartments, works contract service for those units is taxable under the concessional notification entry applicable to such projects.

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