Appeal on Property Value Determination Dismissed

The appeal under the CGST Act and SGST Act regarding the determination of the value of supply for the sale of property with undivided rights of land was dismissed. The Gujarat Authority for Advance Ruling's decision to value the property as per specified notifications, including a 33% deduction for land value, was upheld by the Appellate Authority. The appellant's argument that the actual land value should be fully deducted was rejected, emphasizing compliance with GST notifications. The appeal was denied, affirming the original ruling.

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Issues:
1. Determination of the value of supply for the sale of residential/commercial property with undivided rights of land.
2. Whether the actual cost of land can be deducted for arriving at the taxable value in the construction of residential/commercial complexes.

Issue 1:
The appeal was filed under Section 100 of the CGST Act, 2017 and SGST Act, 2017 against an Advance Ruling. The appellant sought clarification on the value of supply for the sale of property with undivided rights of land. The Gujarat Authority for Advance Ruling ruled that the value should be determined as per the deeming provision of Notification no. 11/2017-CT (Rate) dated 28.06.2017, as amended by Notification No. 1/2018-C.T. (Rate), dated 25-1-2018.

Issue 2:
The appellant contended that the actual value of land in undivided shares is ascertainable and should be fully deducted from the total value of the property, rather than the prescribed 33% deduction as per the notifications. The appellant argued that the intention of the GST regime is not to tax land and that the deduction should reflect the actual value of land. However, the Appellate Authority upheld the ruling, stating that the prescribed deduction of one third of the total amount charged for the supply of land or undivided share of land is in accordance with the notifications. The Authority highlighted that the Value Added Tax Act does not hold relevance in determining GST liability, and the appellant's arguments lacked merit. Consequently, the appeal was rejected, affirming the original Advance Ruling.

This detailed analysis of the judgment addresses the issues raised by the appellant and the rulings provided by the authorities, emphasizing the legal provisions and interpretations involved in the case.

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