AI Drafter 
TaxTMI 
TaxTMI 
2018 (9) TMI 974
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....ax credit. Whether full ITC is allowable or it will be restricted to output GSTliability? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim could be seen thus- Statement of relevant facts having a bearing on the question(s) raised The dealer i.e. The Ideal Construction is a partnership firm duly registered under GST. The nature of business of the firm is that of builders and developers. The said firm is desirous to undertake an affordable housing project in Kolhapur. The land required for the project is already possessed by the Firm. The firm is currently in the process of designing and planning for the said project. T....
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....n);'; As regards insertion of clause (db) above, flats/units in our project may be some times acquired by persons coming under EVVS/LIG/MIG-1/MlG-2 etc. So in that case what is the rate of tax to be applied? What documents to be collected from prospective buyers in order to make them eligible for concessional rate as per said notification? And whether it is mandatory to get the project registered under Pradhan Mantri Awas Yojana(Urban) in order to levy the concessional rate to the prospective buyers. In our opinion registration of project under Pradhan Mantri Awas Yojana is not required, Second Scenario: Wide Notification 1/2018 following amendment was also made: in item (v), after sub-item (d), the following sub-item shall be inserted, namely: - "(da) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017; In this case as regards insertion of clause (da) above, notification of Government of India, in Ministry of Finance, Depa....
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....e levied on our outward supply of works contract service is 12% (Effective rate after land deduction 8%), In this case our purchases or inward supplies will be of the rate 12% or 18% or 28% as the case may be. Thus there will be a considerable amount of ITC (Input Tax Credit) available in our electronic credit ledger. Section 16 of CGST Act specifies the Eligibility and conditions for taking input tax credit subject to conditions and restrictions mentioned in section 49. Section 17 lets the conditions for Apportionment of credit and Blocked credit. In our opinion we are not covered under sub section 5(c) of section 17 as the inward works contract service will be input service for further supply of works contract service. Section 49 (6) states. The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made there under may be refunded in accordance with the provisions of section 54. However as per the booklet "Rate of GST on services published by GST council at page no 23 under the list of services at 12% rate against Sr No 7 entry is as follows: Sr.No. Descriptio....
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....- Question NO. 1: What is the rate of tax to be levied on the sale of Flats/Units to the prospective buyers? And whether registration of project under Pradhan Mantri Awas Yojana is required? This issue is with respect to the affordable housing projects to be undertaken by the applicant in Kolhapur. The applicant has submitted that on the land already in possession with them, they are proposing to construct units which will be of upto 30 square meters [Economically Weaker Section (EWS) houses] or upto 60 sq.mtrs [Lower Income Group (LIG) houses]. Notification No. 11/2017-Central Tax (Rate) dated 28.062017, has specified the rate of central tax to be levied on Intra State supply of services of description specified in Column 3 of the Table in the said Notfn, falling under scheme of classification of services mentioned therein. The relevant clauses of the said Notfn as amended by Notfn No. 20/2017-Central Tax (Rate) dated 22.10.2017 is reproduced below:- Sl.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition 3. Heading 9954 (Construction services) (iv) Composite supply of works contract as defined in clause (119) of section....
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....mendments to Sr. No. 3, column no. 3, item no. iv & v the above Notfn No 11/2017 as follows:- In the said notification, (i) in the Table, - (a) against serial number 3, in colunm (3), - (A) in item (iv),- (I) for sub-item (c), the following sub-item shall be substituted, namely: - '(c) a civil structure or any other original works pertaining to the "In-situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);'; (II) after sub-item (d), the following sub-items shall be inserted, namely: - '(da) a civil structure or any other original works pertaining to the "Economically Weaker Section (EWS) houses" constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban); (db) a civil structure or any other original works pertaining to the "houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/Middle Income Group-I (MIG-I)/ Middle....
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....mic Affairs' notification issued vide F. No. 13/6/2009-INF, dated the 30^th March,2017 has included Affordable Housing under the column "Infrastructure sub sector" against the category of Social and Commercial Infrastructure and has further defined "Affordable Housing" as a housing project using at least 50% of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area of not more than 60 square meters and "Carpet Area" shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016, One of the recommendations made by the GST Council in its 25th meeting held on 18th January 2018 at Delhi was to extend the concessional rate of 12% (8% GST after deducting value of land) to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project which has been given infrastructure status under notification No. 13/06/2009 dated 30th March, 2009. The said notification of Department of Economic Affairs provides infrastructure status to Affordable Housing. The recommendation of the Council would extend the concessional rate to construction of flats/ houses of ....
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....ication, notification and the clause (day of item (v) of Notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017, we find that that the applicant's case is covered under the tax rate of 12%, under Heading 9954 (Construction Services), (v) (da) of above mentioned Notification No. 11/2017, as amended since the project undertaken by them falls under the definition of "Affordable Housing" as stated by them in the application (Whether the housing project qualifies as affordable housing project or not, shall be determined by the applicant as per the definition of affordable housing given in the above mentioned notification.) The benefit of reduced rate would be available to them only in the cases of supply effected after 25.012018 i.e. the date on which Notification 1/2018-Central Tax (Rate) was issued. Q No. 2. What is the rate of tax to be levied by. the supplier (who is registered under GST) from whom we intend to receive composite works contract service (Inward Supply of Composite works contract)? Will it be 12% or 18%? At the time of hearing it was communicated to them that this question can only be raised by the supplier and not by them and they agreed to the same an....