SINGLE RESIDENTIAL UNIT. RATE OF TAX

[Sadanand Bulbule]

Dear experts,

In terms of Notification No. 20/2017 dated 22/08/2017, the composite supply of works contract to a “single residential unit otherwise than as a part of a residential complex” qualifies for 12% GST (6% CGST + 6% SGST), subject to the following general understanding:

Meaning: “A single residential unit is a self-contained residential unit designed for use, wholly or principally, for residential purposes for one family.”

Not part of a residential complex:

What is crucial to decide—if the unit is part of a layout or building with common facilities like: Common areas common water or electricity supply, clubhouse, security services, then it is generally treated as part of a residential complex, and the rate of tax @12% is not applicable. This is my perception.

Experts to comment.

[Sadanand Bulbule]

2020 (7) TMI 110 - AUTHORITY FOR ADVANCE RULING, TAMILNADU - IN RE: M/S. JOHNSON LIFTS PRIVATE LTD.

[Sadanand Bulbule]

2022 (8) TMI 1237 - AUTHORITY FOR ADVANCE RULING, KERALA - IN RE: M/S. SMARTECH ELEVATORS

[Shilpi Jain]

This concessional entry is no more available.

[Shilpi Jain]

For the period this entry is available, your view is right.

AI Summary

Single residential unit supply: concessional GST rate applies unless shared facilities show the property forms part of a residential complex.
Applicability of the concessional GST rate to a composite supply of works contract depends on whether the delivered property qualifies as a single residential unit under Notification No. 20/2017. A single residential unit is a self contained dwelling designed principally for use by one family; presence of shared facilities such as common areas, centralized utilities, clubhouse or security typically indicates the property is part of a residential complex and therefore not eligible for the concession.