TaxTMI 
TaxTMI 
2019 (11) TMI 1567
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....e Town and Country Planning Department, Haryana, on the land measuring 5.00 acres in the revenue estate of Village Dhankot, Sector 102, Gurugram. The building plan in respect of License No.11 dated 10.06.2014 for construction of affordable flats was approved on 26.03.2015. The applicant started construction of flats on the land measuring 5.00 acre before 01.04.2019 and the bookings in respect of flats over this land were also made in the pre-GST period. 2.2 Later on, the applicant submitted an application to the Director General, Town & Country Planning, Haryana, on 03.02.2018 for the grant of license for setting up an Affordable Groups Housing Colony over the Land measuring 4.1125 Acre in the Revenue Estate of Village Dhankot, Sector 102, Gurugram. A separate License bearing No.82 of 2018 for the construction of flats on the land measuring 4.36875 Acre was granted by the Town & Country Planning Department on 06.12.2018. The building plan in respect of the second project was approved on 27.05.2019. On the basis of License No.82 of 2018, the applicant was granted license bearing No. GGM/339/339/71/2019/33 dated 27.05.2019 by the RERA for construction of 595 flats in six towers. ....
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.... deciding the issue at hand, it is necessary to discuss the applicable provisions of law. • As per Notification no. 03/2019 - Central Tax (Rate), some of the explanations were inserted, namely: • "Project" shall mean a Real Estate Project or a Residential Real Estate Project; • "Real Estate Project (REP)" shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016. • "Affordable residential apartment" shall mean a residential apartment in a project which commences on or after 1st April, 2019, or in an ongoing project in respect of which the promoter has not exercised option in the prescribed form to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number 3, as the case may be, having carpet area not exceeding 60 square meter in metropolitan cities or 90 square meter in cities or towns other than metropolitan cities and for which the gross amount charged is not more than forty five lakhs rupees. • "ongoing project" shall mean a project which meets all the following conditions, namely- ....
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....the Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016) by the Central Government or State Government; It is also important to refer to relevant provisions of Real Estate (Regulation and Development) Act, 2016. • Section 2 (zn) "real estate project" means the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartment, as the case may be, for the purpose of selling all or some of the said apartments or plots or building, as the case may be, and includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto; • Section 2 (zq) "sanctioned plan" means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if applicable, permissions such as environment permission and such other permissions, which are approved by the competent authority prior to start of a real estate project; • Section 3. (1) No promoter sh....
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....5.04.2019 6. Likely date of starting the construction 05.07.2019 7. Expenditure incurred till the date of Application NIL 8. Expenditure to be made in each qtr. April to June 2019 - Nil 9. Environment clearance Applied on 19/03/2019, but not yet received (The related documents are placed on file). 5.3 On the basis of above self-declaration by the company, all the events i.e. Sanction of building plans, declaration of likely date of start of construction & registration under Haryana Real Estate Regulation Authority etc. occurred after 31/03/2019. Further, the company had not got the Environment Clearance certificate till the date of grant of RERA certificate, which has to be obtained, before start of construction activities of the project. As a confirmation of non-start of Construction activities, the company has declared that they had not incurred any expenditure on the project. This fact is clear from the declaration of the applicant before the RERA that expenditure incurred till the date of declaration was NIL. 5.4 In view of the above facts, it is clear that a separate license bearing No.82 of 2018 dated 06.12.2018 and RERA License No....