AI Drafter 
TaxTMI 
TaxTMI 
2018 (4) TMI 1077
X X X X Extracts X X X X
X X X X Extracts X X X X
....shall be entitled to sell the flats/ unit falling to the applicant's share, in terms of the collaboration agreement. Development and construction of Project 3. Post purchase of land/ acquisition of land rights: a. The applicant shall apply for the requisite approvals. b. The applicant plans to get the construction work done by contractors as well as on its own. 4. Following agreements would be entered into by the Applicant: a. One for sale of undivided and impartible share in land; and b. Another agreement for sale of superstructure. Details of Question on which Advance Ruling is requested: 5. In case where there are two transactions each represented by a separate Agreements i.e. i. One for sale of undivided and impartible share in land @ say Rs. 100; and ii. Another agreement for sale of superstructure @ say Rs. 15 6. Following are the questions on which the applicant is seeking advance ruling: a) Whether GST will be applicable on the sale of undivided and impartible share of land represented by Agreement to sell the land? b) Whether GST shall be applicable on sale of superstructure (which is under construction)? c) If yes:-....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Section 5 Construction services 3 Heading 9954 (construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 9 - (ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 - (iii) construction services other than (i) and (ii) above. 9 - Paragraph 2: In case of supply of service specified in column (3) of the entry at item (i) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Sale Agreement' in Delhi where sale of land and sale of its superstructure have been separately registered. However, they could not produce any such registered agreements. 18. The applicant has submitted that laws in India recognises "land" and "super-structure" as separate and independent immovable properties. The applicant has referred to provision of General Clauses Act, Indian Contract Act, 1872, Specific Relief Act, Transfer of Property Act, The Indian Evidence Act, Registration Act, Stamp Act, Income Tax Act etc. to claim that land and building are two different assets or immovable property and that land and superstructure can be independently sold and purchased. However, under GST, the valuation of supply of goods and services has to be done in accordance with Section 15 of the CGST Act, 2017. 19. Further, even if separate values would be available for land and goods & services, the paragraph 2 of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 would be applicable for ascertaining value of goods and services for levy of GST, as discussed below. 20. The supply in this case is a composite supply consisting of three components, namely (i) lan....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... grant of exemption provided the service tax was leviable under Section 66/66B of the Finance Act, 1994. It was held that the abatement to the extent of 75% or 70% by a notification or a circular cannot substitute the lack of statutory machinery provisions to ascertain the value of services involved in a composite contract. 25. However, under GST Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 - S. No. 3 r/w Paragraph 2, the deemed value of land or undivided share of land has been fixed at one-third of the total amount charged. Hence, in GST, the machinery provisions to ascertain the value of land is available in the notification which has been issued under Sub-Section (5) of Section 15 of the CGST Act, 2017 regarding value of taxable supply. The said sub-section (5) of Section 15 of CGST Act, 2017 reads as under: "Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified by the Government on the recommendations of the Council shall be determined in such manner as may be prescribed." 26. The said Notification has been issued under Section 15(5) of the CGST Act, 2017 by the Government on the ....