2022 (9) TMI 778

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....ear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admis....

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.... as follows: 1. That, they are the land owner developer and have alienated development rights to the builder developer in the year 2016, i.e., prior to introduction of GST in 2017. 2. That, in their opinion they have supplied development rights to the builder and in exchange received construction services from the builder. That, they are desirous of clarification whether the development rights received by the builder can be construed as consideration received by such builder. 3. Whether the construction service rendered by the builder against the consideration received from the owner in the form of transfer of development rights on the land, the liability for payment of GST/ service tax arose either: a) Immediately on receipt of dev....

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.... The applicant i.e., the land owner-promoter will claim such tax as ITC as described above whenever he makes further sale of such property before issuance of completion certificate. Further according to the conditions laid down in Notification No. 04/2018 the liability to pay tax on consideration received by the developer-promoter in form of development rights shall arise at a time when such developer-builder transfers possession or right in the constructed complex. That is after the completion of the construction of a civil structure the time of supply arises when the right or possession in such constructed complex is transferred to the land owner-promoter. 8. The ruling is given as below: In view of the above discussion, the questions ....