TaxTMI 
TaxTMI 
2021 (1) TMI 370
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....d. The flats are being developed over 3465 sq.mtrs of land. The total FSI of the scheme is of 9342.61 Sq. mtr and 9084.81 Sq. Mtrs. of FSI consumed in the flats having carpet area below 60Sq. Mtrs. 3. The applicant has submitted plan for project before appropriate authority and this plan gets approved by authority namely AUDA (Ahmedabad Urban Development Authority) vide their approval letter in "Form D" dated 27/04/2017 having Sr. No. PRM/347/12/2016/249 under "Residential Affordable Housing Scheme". 4. Accordingly, the applicant sought Advance Ruling on the following question: Whether, the construction services provided by the applicant under the project "SAMANVAY RESIDENCY" qualifies for the reduced CGST rate of 6% (under CGST and SGST Act) as provided in Sr. No. 3 item (v) sub-item (da) of Notification No. 01/2018-CT (Rate) Dated 25.01.2018.? Applicant's Interpretation of Law/Taxation under GST Regime 5. The applicant submitted that their activity is covered under Sr. No. 5 (b) of Schedule II of CGST Act, which is read as under: "Supply of Services : Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sal....
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....dification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; 8. The applicant has submitted following regarding Affordable Housing Project : 8.1 The reduced rate of 12% (8% after reducing 1/3rd towards land) is applicable only for the low cost houses up to a carpet area of 60 Sq. Mtrs. per house in an affordable housing projects which have been given infrastructure status by Govt. of India vide F. No. 13/6/2009-INF dated 30.03.2017. 8.2 In the said Notification, "Affordable Housing" is covered at Sr. No. 5 under the head "Social and Commercial Infrastructure" and as per the Notification, "Affordable Housing" is defined 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 Sq. Mtrs. 8.3 Accordingly, a housing project using at least 50% of the Floor Area Ratio (FAR)/ Floor Space Index for dwelling units with carpet area @ of not more than 60 Sq. Mtrs. has been given the infrastructure status by the GOI and therefore would be....
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....anding that the houses with carpet area of not more than 60Sq. Mtr. itself be considered as low cost houses for determining the rate of GST. Personal Hearing 12. The authorized representative of the company appeared and reiterated the submission already made in the application filed with the Authority of Advance Ruling. Findings and Discussion 13. We have considered the submissions made by the Applicant in their application for advance ruling as well as the additional submissions made by authorised signatory, during the personal hearing proceedings on 02-07-2020 before this authority. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST 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 provisions under the GGST Act. 14. We have gone through the facts of the case. The only issue before us is whether the construction services provided by the applicant u....
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.............; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (c) a civil structure or any other original works pertaining to the "In situ rehabilitation of existing slum dwellers using land as a resource through private participation" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers; (d) a civil structure or any other original works pertaining to the "Beneficiary led individual house construction/enhancement" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) ..........................................; or (f) .......................................... 6 -] (v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to, - (a) ..........................................; (b) ..........................................; (c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by compet....
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.... Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017;" 17.2 According to sub-item (da) of item (v), 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 would attract a tax rate of 12%. This clause will be applicable to the applicant if the project undertaken by them is an affordable housing project which has been given infrastructure status vide Government of India notification mentioned above. 18. Department of Economic Affairs' in the Notification issued vide F. No. 13/6/2009-INF, dated the 30th March, 2017, has included Affordable Housing under the column "Infrastructure sub-sector" against the category of Social and Commercial Infrastructure. In the said notification, term "Affordable Housing" has defined 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. Further, in the said Notification, it i....
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......... 8. ...................... 9. ................. 11 10. "Affordable Housing" is defined 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. @ "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. 20. 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 less than 60 sqm in projects other than the projects covered by any scheme of the Central or State Government also. 21. In response to a request for clarification to ena....