TaxTMI 
TaxTMI 
2021 (10) TMI 327
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....ons, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to be engaged in the business of construction of residential flats within the Khardah Municipal area in the district of North 24 Paraganas, West Bengal. 1.3 The applicant submits that he has some ongoing projects construction of which had started before 01.04.2019 and the applicant has opted to pay tax at old GST rates in respect of such ongoing projects. 1.4 The applicant submits further that the definition of 'affordable residential apartment' has been changed w.e.f. 01.04.2019 vide Notification No.03/2019-C....
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....after availing 1/3rd deduction towards value of land) with effect from 25.01.2018. 2.4 However, from 01.04.2019, the definition of 'affordable housing' has been changed. The new definition of Affordable Housing under Notification No. 3/2019-Central Tax (Rate) dated 29.03.2019 reads as ' 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.' 2.5 Further, the term 'ongoing project', according to the said Notification shall mean a project which meets all the following conditions, namely- (a) commencement certificate in respect of the project, where required to be issued by the competent authority, has been issued on or before 31st March, 2019, and it is certified by any of the foll....
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.... dated 03.07.2018] where the AAR held that the construction services provided by the applicant qualifies for the reduced CGST rate of 6% vide the entry serial number as referred in the immediate preceding para. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has furnished a written submission stating as under: • Flats having carpet area of 60sqm and value up to 45 lacs are affordable residential apartment in metropolitan cities and flats having carpet area of 90sqm and value up to 45 lacs are affordable residential apartment in non-metropolitan cities. So, flats mentioned in the application are all affordable residential apartments. • As per Notification No 03/2019-Central Tax (Rate) dated 29.03.2019, for all ongoing affordable residential projects (which are booked on or before 31-03-2019), if the promoter or builder exercises one-time option in the prescribed form (Annexure IV), within stipulated time, for paying tax at the old GST rate, he will pay the effective rate of GST @ 8% with ITC. • So, for all flats for which first booking money is received by the applicant before 01-042019, should be treated as ongoin....
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....f this service) 9 - (ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 (iii) construction services other than (i) and (ii) above. 9 Para 2 of the Notification stood as under: In case of supply of service specified in column (3) of the entry at item (i) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply. Explanation. - For the purposes of paragraph 2, "total amount" means the sum total of, - (a) consideration charged for aforesaid service; and (b) amount charged for transfer of land or undivided share of land, as the case may be. 4.4 The aforesaid notification has been amended from time t....
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.... (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 6 Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay central tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case may be, by the 10th of May, 2019#; Provided also that where the option is not exercised in Form at annexure IV by the 10th of May, 2019#, option to pay tax at the rates as applicable to item (i) or (ia) or (ib) or (ic) or (id) above, as the case may be, shall be deemed to have been exercised; Provided also that invoices for supply of the service can be issued during the period from 1st April 2019 to 10th May 2019# before exercising the option, but such invoices shall be in accordance with the option to be exercised.; (if) Construction of a complex, building, civil structure or a part thereof, including, - (i) commercial apartments (shops, offices, godowns etc.) by a promoter in a REP other than RREP, (ii) residential apartments in an ongoing project, other than affordable residential apartments, in respec....
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.... USHA PLAZA 29-01-19 732.28 485.18 AFFORDABLE 1St booking on 14-03-2019 6 INDRADHANUSH RESIDENCY 28-04-18 663.10 409.90 AFFORDABLE 1St booking on 19-06-2018 7 KEDAR BHABAN X X X NON-AFFORDABLE NOT RELEVANT TO OUR QUESTION 8 MAA SARADA BHABAN 01-02-19 753.29 753.029 AFFORDABLE 1St booking on 16-01-2019 9 SARJURAM NIBAS 13-08-18 800.55 457.26 AFFORDABLE 1St booking on 01-01-2019 10 ASHA PLAZA X X X CC OBTAINED BEFORE 01-04-2019 NOT RELEVANT TO OUR QUESTION 11 MANASHI APARTMENT X X X NON-AFFORDABLE NOT RELEVANT TO OUR QUESTION 4.8 It has been stated earlier that the authorised representative has submitted certificate of commencement in respect of 06(six) projects involved in the instant case. The said certificates appear to have been issued under rule 28 of the West Bengal Municipal (Building) Rules, 2007 under West Bengal Municipal Act, 1993 by the L.B.S.. The date of commencement, as per the certificates, is found to be as under: Name ....
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....en is reproduced below: Question No. 2: What is an affordable residential apartment? Answer: Affordable residential apartment is a residential apartment in a project which commences on or after 01-04-2019, or in an ongoing project in respect of which the promoter has opted for new rate of 1% (effective from 01-04-2019) having carpet area up to 60 square meter in metropolitan cities and 90 square meter in cities or towns other than metropolitan cities and the gross amount charged for which, by the builder is not more than forty-five lakhs rupees. [Cities or towns in the notification shall include all areas other than metropolitan city as defined, such as villages.] In an ongoing project in respect of which the promoter has opted for new rates, the term also includes apartments being constructed under the specified housing schemes of Central or State Governments. [Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their geographical limits prescribed by Government.] Question No. 4: Does a promoter or a builder has option to pay tax at old....