TaxTMI 
TaxTMI 
2020 (11) TMI 718
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.... Rules, 2017 and under Section 97 of the KGST Act, 2017 read with Rule 104 of the KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant, being the owner of an immovable property bearing Sy. No.4, measuring 1 acre 2 guntas, situated at Bikasipura Village, Uttarahalli Hobli, Bangalore has entered into a Joint Development Agreement dated 19.05.2016 with M/s. Suprabhat Constructions, a partnership firm, authorizing them to construct residential flats by incurring the necessary cost together with certain common amenities and upon the development of the said property, the applicant gets 40% share of undivided right, title and interest in the land proportionate to super b....
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....ete the project and till the developer's share is entirely conveyed to the Developer or his nominees. The Developer shall at its sole cost, expense and responsibility, develop the schedule property in accordance with the specifications set out there in and the responsibility to obtain conversion orders, construction plans and other permissions from the respective authorities by the Developer. 4.2 The Developer was required to commence construction activities within 30 days from the date of receipt of the sanctioned plan and shall complete the project within 24 months from the date of receipt of the sanctioned plan, subject to the grace period of 6 months. The said project shall be deemed to be complete within stipulated period and the Deve....
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....s/flats in the said residential apartment. 4.6 The developer is liable to pay tax (GST) on construction service (Construction of complex) intended for sale to a buyer, wholly or partly, at the rate of 18% in terms of the Notification (Central tax rate) No. 11/2017 Central Tax (Rate) dated 28.6.2017 as amended by Notification No. 04/2018 Central Tax (Rate) dated 25.01.2018. Further the valuation of said services is to be determined in terms of paragraph 2 of the Notification No. 11/2017 Central Tax (Rate) dated 28.6.2017, prior to 1.4.2019 5. Applicant's interpretation of law : The Applicant submits their interpretation of law as under: 5.1 The applicant contends that the liability to pay GST by the applicant would not arise as the applic....
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....ich is appended below. "5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building" 5.5 The applicant further contends that time of supply of service as per section 13(2) (c) is receipt of the service from the developer reflected in his books of accounts based on contractual obligations mentioned at JDA and Area sharing agreement and the date on which developer made an application for issue of occupancy certificate. 6. FINDINGS & DISCUSSION 6.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Smt. VANI. H. appeared as Authorized representative of the applicant during the personal hearing. We have also considered the issu....
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.... the applicant has executed the sale deeds for sale of the said flats after the occupancy certificate dated 26.08.2019 and thus the transaction is not exigible to GST in terms of clause 5 to Schedule III of the CGST Act 2017, which specifies certain transactions to be treated neither as a supply of goods nor a supply of services and the same is appended below: "5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building" 6.6 Further Schedule Il to the CGST Act 2017 specifies certain activities / transactions to be treated as supply of goods / services. Clause 5(b) of the said schedule stipulates that "Construction of a complex, building, civil structure or a part thereof, including a complex or building in....
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....ract Service" are liable to GST. 6.9 The value of the aforesaid supply is to be ascertained from open market and would be equal to open market value as per rule 27 of the CGST/SGST rules 2017. Further it is also clarified vide Notification No. 4/2019 Central Tax (Rate) dated 29-03-2019 at paragraph (iii) 1B, which states that "Value of portion of residential or commercial apartments remaining un-booked on the date of issuance of completion certificate or first occupation, as the case may be, shall be deemed to be equal to the value of similar apartments charged by the promoter nearest to the date of issuance of completion certificate or first occupation, as the case may be." 6.10 The time of supply in the instant case would be the time at....