TaxTMI 
TaxTMI 
TaxTMI 
2021 (9) TMI 1292
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....al has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and SGST Act, 2017) by M/s. Jayant Snacks and Beverages (hereinafter referred to as Appellant) against the Advance Ruling No. GUJ/GAAR/R/33/2020 dated 08.07.2020. 3. The appellant has raised the following questions for advance ruling in the application for Advance Ruling filed by it. 1. What will be the value of supply for the transaction of sale of residential/ commercial property with undivided rights of land? 2. In the case of construction of residential/commercial complex, the builder charges an amount which is inclusive of land or undivided share of land. As per....
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....the GAAR'), vide Advance Ruling No. GUJ/GAAR/R/33/2020 dated 08.07.2020 inter-alia observed that the appellant contention to allow the deduction of actual value of land from the transaction value instead of deduction, as defined in the Notification No. 11/2017-CT (Rate) dated 28.06.2017, is not tenable and beyond the purview of legality. In para 2 of the Not. No. 11/2017-Ct (Rate) dated 2017, as amended by Not. No. 01/2018-CT (Rate), the value of land or undivided share of land required to be deducted from the total amount charged for the subject supply has been clearly provided and it is deemed to be one third of the total amount charged for such supply. In view of the foregoing, the GAAR ruled as follows :- Question1: What will be the v....
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....ue of consideration received can be deducted has mechanically followed the provision of Para 2 of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No. 01/2018-CT (Rate) dated 25.01.2018. Thereby they have not taken into consideration the spirit behind the intention of GST regime that intends not to tax Land and for the purpose exclude the land value. (iii) Section 2 (102) of CGST Act, 2017 defines "Services" means anything other than goods. Thus sale of land and building can be service under GST Act, as it is not goods. As per Para 5 of Schedule III of CGST Act, 2017 sale of land is 'neither supply of goods nor a supply of service', therefore, GST cannot be imposed on sale of land. (iv) By capping the....
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....may kindly be quashed and set aside. [2] Be held that, the appellant's actual cost of land be allowed to be deducted as no tax on land is leviable under GST regime. FINDINGS :- 10. We have carefully gone through and considered the appeal and written submissions filed by the appellant, submissions made at the time of personal hearing, Advance Ruling given by the GAAR and other material available on record. 11. The appellant has contended that in their case the actual value of land of undivided share is ascertainable therefore, they may be allowed the deduction of full value of land from the total value to be realized of the constructed residential bungalow property and not 33% as prescribed under Notification No. 11/2017-CT (Rate) and N....
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.... the case may be. 13. The said Paragraph 2 of Notification No. 11/2017-CT (Rate) was amended vide Not. No.1/2018-C.T. (Rate), dated 25-1-2018. The amended Paragraph 2 is reproduced as under: (ii) for paragraph 2, the following shall be substituted, namely :- "2. In case of supply of service specified in column (3), in item (i); sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi), against serial number 3 of the Table above, involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value o....