2019 (5) TMI 493

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....tain provisions. Therefore, unless a mention is specifically made to any 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, the expression 'GST Act' would mean CGST Act and MGST Act. 02. FACTS AND CONTENTION - AS PER THE APPLICANT M/s. Puranik Construction Pvt. Ltd., engaged in the business of civil construction of residential premises as a Contractor have filed the present Application in of a proposed Civil Construction Contracts to be entered into with a Developer, namely, Puranik Builders Limited for construction of a residential project located at Nerul, Navi Mumbai. The said Project is a residential project will be comprising of 135 buildings (having FSI utilization Of Sq. Mts. 322505) all having residential flats/units having carpet area of up to or less than 60 Sq. Mts. (i.e. Low Cost House (LCH)) except for 26 buildings (having FSI utilization of Sq. Mts. 63348) wherein commercial shops may be constructed on the ground floor (FSI utilization of 4928.11 Sq. Mts.). They have submitted that out of the total FSI utilization, only ....

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....r the DEA Notification and have stated that all conditions under the above said Entry (v) (da) is satisfied by them and that the subject housing project can be considered as having infrastructure status as defined in the DEA Notification. 2.6 They have also cited the ruling of the Maharashtra AAR in case of Prajapati Developers (TS-404-AAR 2018-NT) = 2018 (9) TMI 236 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA and CBEC clarification F. No. 354/52/2018-TRU to support their contention that once the condition of more than 50% FSI being used for the construction of units less than 60 Sq. Mts. is fulfilled, the project would be considered as an AHP having Infrastructure status as per the DEA Notification and no other Certificate for any authority is required for the same. 2.7 They have further submitted that entry (v) (da), no-where restricts the benefit to a 'Developer' only. According to them the benefit is available to any person who is supplying the works contract services pertaining to Low Cost Houses in an AHP. The Notification entry is qua the supply of service and not qua the person and therefore once a project qualifies as an AHP, the benefit of concessional rate of tax wou....

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....and requested for admission of the application. During hearing Jurisdictional Officer Sh. Sandeep Patil, State Tax Officer (THA-VAT-C-015) Thane appeared stated that they would be making submissions in due course. 4.2 The Application was admitted and called for final hearing on 07.02.2019, Sh. Harsh Shah, and Sh. Gourav Sogani from ELP, Advocate & Solicitors appeared, made oral and written submission. Jurisdictional Officer Sh. Sandeep Patil, State Tax Officer (THA-VAT-C-015) Thane also appeared and submitted the response of the jurisdictional office. 05. OBSERVATIONS 5.1 We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the jurisdictional office. The only issue that is before us is whether the construction services proposed to provided by the appliGi11t under the subject project will qualify for the reduced CGST rate of 12% (6% each of CGST & SGST), as provided in Sr. No. 3 - item (v) - sub item (da) of Notification No. 01/2018-CT (Rate) dated 25.01.2018. 5.2 We find that the question posed by the applicant is with respect to a proposed housing project which they will enter into with a Developer, namely, ....

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....Housing. The recommendation of the Council would extend the concessional rate to construction of flats/ houses of less than 60 sqm in projects other than the projects covered by any scheme of the Central or State Government also. The GST Council has also observed that "It may be recalled that all inputs used in and capital goods deployed for construction of fiats, houses, etc attract GST of 18% or 28%. As against this, most of the housing projects in the affordable segment in the country would now attract GST of 8% (after deducting value of land). As a result, the builder or developer will not be required to pay GST on the construction service of flats etc. in cash but would have enough ITC (input tax credits) in his books to pay the output GST, in which case, he should not recover any GST payable on the flats from the buyers. He can recover GST from the buyers of flats only if he recalibrates the cost of the flat after factoring in the full ITC available in the GST regime and reduces the ex-GST price of flats." The GST Council has also mentioned that the builders/ developers are expected to follow the principles laid down under 171 of the GST Act (Anti-Profiteering Rules) scrupulo....