Sale of Applicant's Share of Flats Exempt from GST Post-Occupancy Certificate

The Authority ruled that amounts received for the sale of the applicant's share of flats are not subject to GST if the entire consideration was received post-Occupancy Certificate issuance. This decision aligns with Schedule III of the CGST Act 2017 and Clause 5(b) of Schedule-II, exempting such activities from GST.

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Issues:
1. Admissibility of the application filed by an unregistered person for Advance Ruling.
2. Exigibility of GST on amounts received towards the sale of the applicant's share of residential flats.
3. Interpretation of law regarding liability to pay GST on the sale of flats post-Occupancy Certificate issuance.

Analysis:

Issue 1 - Admissibility of the application:
The applicant, an unregistered person, filed an application seeking an Advance Ruling concerning the applicability of a notification, determination of tax liability, and whether the activity amounts to a supply. The application was admitted as it covered issues under Section 97(2)(b), (e), and (g) of the CGST Act 2017.

Issue 2 - Exigibility of GST on sale of residential flats:
The applicant entered into a Joint Development Agreement (JDA) with a developer, where the applicant received 40% share of undivided right in the land post-Occupancy Certificate issuance. The applicant contended that the sale of flats post-Occupancy Certificate is not subject to GST as per Schedule III of the CGST Act 2017 and Notification No. 11/2017 Central Tax (Rate).

Issue 3 - Interpretation of law on GST liability post-Occupancy Certificate:
The applicant argued that since the sale of flats occurred after the Occupancy Certificate was issued, it falls under the provision of Schedule III of the CGST Act 2017, treating it neither as a supply of goods nor services. The applicant supported their contention with sale deeds and receipts showing transactions post-Occupancy Certificate issuance.

Findings & Discussion:
The Authority considered the submissions and relevant facts. It noted that the sale of flats post-Occupancy Certificate issuance is not exigible to GST as per Schedule III of the CGST Act 2017. The transaction is treated neither as a supply of goods nor services unless the flats were sold before the certificate issuance, making it liable for GST as "Works Contract Service."

Ruling:
The Authority ruled that amounts received for the sale of the applicant's share of flats are not subject to GST if the entire consideration was received post-Occupancy Certificate issuance. This decision aligns with Schedule III of the CGST Act 2017 and Clause 5(b) of Schedule-II, exempting such activities from GST.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Authority's ruling on the matter.

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