TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 659
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....ar, 1st Floor, Vasco da Gama, Goa-403801 and hold GSTIN 30AAZFS3304A1ZL. The Applicant is a real estate developer carrying on the business of construction of residential apartments, shops and development of plots. The applicant has acquired by sale deeds certain parcels of Land at Dabolim & Chicalim in Mormugao, Goa and is currently the Owner of the Land and the applicant is currently undertaking certain plotting schemes on these parcels of lands in respect of which the applicant is seeking through the advance ruling for the purpose of determination of the following question: (a) Whether sale of plots is a supply. (b) If yes, whether it is a supply of goods or services and under which category it falls. (c) The valuation of the supply, if applicable. (d) Rate of tax as applicable. (e) Abatement if any. B. Project Detail The applicant has by way of sale deeds acquired the parcels of land intended for development. As such the applicant is the owner of the land. The applicant is proposing to sub divide the larger parcel of land into smaller plots for sale to buyers. (i) Project 1: Waddo by Shantilal This project comprises a parcel of land which will be sub-divided into p....
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.... Paragraph 5b of schedule II. Paragraph 5b of schedule II provides for "construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier. Explanation. - For the purposes of this clause- (1) the expression "competent authority' means the Government or any authority authorized to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely: - (i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or (ii) a chartered engineer registered with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority; (2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure; ....
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....evelopment Act, 2016 [RERA], "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 apartments, 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. RESIDENTIAL REAL ESTATE PROJECT (RREP) The term "Residential Real Estate Project (RREP)" shall mean a REP in which the carpet area of the commercial apartments is not more than 15% of the total carpet area of all the apartments in the REP - clause (xix) of paragraph 4 of Notification No. 11/2017-C.T. (Rate) and 8/2017-I.T. (rate) both dated 28/06/2017 inserted w.e.f.1-4-2019. In the project of the applicant there is no construction of any buildings or structures. Therefore, the question arises whether it can be said to fall under any of the categories REP or RREP. If it were to be decided that it falls within the purview of para 5(b) of Schedule II the typ....
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....les which are proposed for construction/ erection are as per the conditions mandated by the local bodies as preconditions for giving NOC for plot development. Plot when purchased as a parcel of land, subdivided into smaller plots saleable with basic amenities involves sizable amount of value addition. It is beyond doubt that there is a contract between probable buyer and seller of subdivided plot. This contract is qualified to be called as sale and the sale in consideration is in respect of the subdivided plot of land. Land will be converted into plots through some value addition works. Before OC, it is land and after OC, it will be a plot. Such value addition works will be carried out to make it marketable as per the norms of the local authority. However, question to be answered is whether it is qualified to be covered by definition of 'Supply" under GST Act. It is also to be determined as mere value addition done to land will change the nature of land from immovable property and to goods taxable under the cover of supply. Here it will be important to note, firstly, that the roads, poles or drainages constructed by seller of land are at no time transferred to the purchaser of su....