TaxTMI 
TaxTMI 
2022 (3) TMI 906
X X X X Extracts X X X X
X X X X Extracts X X X X
....e under GST Act, 2017 of Immovable Constructed Commercial Property without any occupancy or Completion Certificate where the area of the land exceeds 500 square meters or the number of Apartments proposed to be developed exceeds 8 inclusive of all phases particularly when the actual Guidance value fixed by the Competent Government Authority is more than the Value of Sale Consideration stated in the absolute Sale Deed registered by the Builder in favour of the Purchaser. 3. Admissibility of the application:. The question is about "determination of the time and value of the supply of the goods or services or both" and hence is admissible under Section 97(2)(c) of the CGST/KGST Act 2017. 4. Brief Facts of The Case: The applicant furnishes some facts relevant to the issue: 4.1 The applicant states that he intends to start a business as service provider in construction and sale of commercial immovable properties. 4.2 The applicant sought clarification with respect to determination of the taxable value of the commercial immovable property for the purpose of GST liability i.e. whether the sale consideration mentioned in the sale deed between the builder and the proposed pur....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include,- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gistrations Department, it is to state that the Guidance Value is the minimum value below which no property transaction can be accomplished. It is the least value at which one can register a property. The Guidance Values are published by the Dept, of Stamps & Registration in Karnataka under the Stamp Act. Thus it has legal force. 9. Guidance Value is applicable to both plots and constructed properties. As per the law, even if the sale value of a property is lower than Guidance Value then the property has to be registered at Guidance value. However when the Sale value of a property is higher than Guidance Value then the property has to be registered at sale value. The government Strives to keep Guidance Value as close to market value as possible. When property guideline value is lower than its market value, it tends to a number of property deals where only the property guideline value is mentioned in the sale document and balances are mode in cash. Generally, the market value of a property is higher than its guideline value, and the difference between market value and guideline value often ends up becoming the 'cash component' in the deal, which is considered as a source ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ration mentioned in the sale deed between builder and proposed purchaser or guidance value fixed by the state government authorities for the purpose of registration should be considered as taxable value for the purpose of GST liability. 9. Section 15 of CGST Act 2017 deals with "value of taxable supply" and the same is reproduced below:- 15. Value of Taxable Supply. - (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply ....