Open parking rights are a separate taxable supply, not part of composite apartment construction services.

Open parking space rights in a residential project are not a composite supply with apartment construction where the parking facility is optional, separately identifiable, and not naturally bundled with the principal construction service. The open parking area is treated as a common area rather than a transferable garage, so the parking charge remains a distinct taxable supply and cannot take the tax treatment or land abatement applicable to construction services. Completion of the apartment and issuance of a completion certificate do not automatically extend the apartment's non-GST status to a separately charged parking component collected later.

---

---

Issues: Whether the consideration charged for the right to use open parking space along with construction of residential apartments forms a composite supply of construction services, and whether such parking charges remain non-taxable after completion certificate or when collected separately after sale of the apartment.

Analysis: Under the GST framework, a composite supply exists only where two or more taxable supplies are naturally bundled and supplied together in the ordinary course of business, with one being the principal supply. The statutory scheme and the RERA definitions of common area and garage show that open parking area is a common area and not a transferable garage. The open parking facility was optional, was not inseparably linked with the construction service, and could be opted for by a buyer even later. It was therefore not naturally bundled with apartment construction. Since the parking charge represented a distinct service, it could not share the tax treatment of construction services or claim land abatement on the parking component. Once the apartment itself became a non-GST supply after completion certificate, the parking component did not automatically merge into the exempt apartment transaction because it remained a separate supply.

Conclusion: The right to use open parking space is not a composite supply with construction of the apartment and is taxable separately at 18%, including where the parking charge is collected after completion certificate.

Final Conclusion: The advance ruling was upheld and the appeal failed.

Ratio Decidendi: A facility that is optional, not naturally bundled with the principal construction service, and constitutes a distinct taxable supply cannot be treated as part of a composite supply merely because it is offered to apartment buyers in the same project.

---