TaxTMI 
TaxTMI 
2023 (5) TMI 709
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....o as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in the development of plots. 3. The applicant has sought advance ruling in respect of the following questions: i. Whether the applicant is liable to charge GST, if the booking of plot, receipt of consideration and agreement for sale is entered as well as sale deed is executed after the release certificate, on the following components (Under Section 97(2)(e) of CGST / KGST Act): a. Sale of Plot; b. Basic Infrastructure Development charges; and c. Other common amenities and facilities charges. ii. Whether the applicant is liable to charge GST, if the booking of plot and / or receipt of consideration and/or agreement for sale is entered prior to the release certificate and sale deed is executed after receipt of release certificate, on the following components (Under Section 97(2)(e) of CGST/ KGST Act): a. Sale of Plot; b. Basic Infrastructure Development charges; and c. Other common amenities and facilities charges. iii. What is the applicability of GST if the sale price is a consolidated price in the agreement for sale towards....
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....* Development of basic infrastructure and other common amenities and facilities. * Verification of development of infrastructure by authorities. * Release of plots for registration by authorities and registration of plots and collecting balance money. * Completion of pending other common amenities and facilities and handing over the same to common association / apex body, as the case may be. 5.6 The applicant states that the sale consideration of the plots includes consideration towards plot of land, development of basic infrastructure prescribed by authorities in the approved plan as well as cost for providing all other common facilities, amenities and specifications to be provided within the project. 5.7 The applicant states that the cost of electrical connectivity to the common amenities, water line and plumbing till the plot, etc is included in the sale consideration. The applicant upon obtaining the Release Certificate from the competent authority shall offer in writing the possession of the plot, to the purchaser/s in terms of the draft agreement for sale, to be taken within two months from the date of issue of release certificate as per RERA ....
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.... is of the understanding that even where single price is charged for sale of plot, basic infrastructure development charges and other common amenities and facilities charges in the agreement for sale, it is not liable for GST considering the decision of authority for advance ruling in No. KAR ADRG 31/2022 dated 08-09-2022 and based on Circular No. 177/09/2022 TRU dated: 03-08-2022. PERSONAL HEARING / PROCEEDINGS HELD ON 12.12.2022 7. Smt Annapurna Kabra, Chartered Accountant and Duly Authorised Representative appeared for personal hearing proceedings held on 12.12.2022 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We h....
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.... phases of development with common amenities and facilities including club house so that the plot owners of integrated development has access and use the amenities and facilities including club house in common. The Promoter is desirous of integrating the Additional land with the larger property and/or excluding certain portion of the Larger Property to form a single integrated plotted development residential project to be developed in phase-wise manner and such phase-wise development shall be considered as future phases of Godrej Woodland residential layout upon completion and become part and parcel of Godrej Woodland, hereinafter referred to as "Future Development". The Promoter is entitled to develop the said Additional Lands earmarked for future development by modifying the existing Layout Plan sanction and RERA approval for Godrej Woodland, Godrej Woodland Phase-II, Godrej Woodland Phase-Ill and the Purchaser/s confirm that he/she/they is/are aware of the same and hereby give his/her/their consent for such future development of Godrej Woodland by modification of existing Plan. Purchaser/s is/are aware that the Purchaser/s and occupiers of the said future development in Addition....
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..../specified in Payment Plan (Annexure "B") annexed hereto. g. Para 1.5 states as under: "The Purchaser/s has paid an Application money/ initial amount of Rs........... /- to the Promoter as part payment towards the Sale Consideration of the Plot. The Purchaser/s hereby agrees to pay the balance Sale Consideration and other charges towards the Plot as per the Payment Plan (Annexure 'B') annexed hereto, as demanded by the Promoter within the time and in the manner specified therein. h. Para 1.6 states as under: "The Sale Consideration of the said Plot includes recovery of price of land, development of the Basic Infrastructure and Other common amenities and facilities and cost for providing all other facilities, amenities and specifications to be provided within the Plot and the Project. The Promoter shall provide the electric wiring till the Plot, electrical connectivity to the common amenities, water line and plumbing till the Plot, etc., the cost of which is included in the Sale consideration. i. Para 2 Variation states as under: "The Promoter shall confirm the final Plot Area that has been allotted to the Purchaser/s after the development....
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.... on one of the plots in Additional Land. Upon payment of subscription fees as prescribed by the Promoter or its nominees, the Purchaser/s shall be entitled to use the facilities and services of the Club House. The Club House shall be in complete control of the Promoter/ remain in exclusive ownership of the Promoter and the Promoter has the sole right and discretion to sell, lease, mortgage, encumber, construct buildings, complexes, etc., the Club House and the Purchaser/s are specifically made aware of this fact before the execution of this Agreement. The Promoter, at its own discretion, may also hand over the Club House to the Association of Owners/ Apex Body for maintenance and management of the Club House. n. The Annexure B which is part of the above agreement and related to the Sale Consideration and Payment Plan, shows as under "ANNEXURE B SALE CONSIDERATION AND PAYMENT PLAN The Sale consideration shall be Rs./- ............. (Rupees ............. only) excluding taxes. Sl.No. Particulars of Sale Consideration Rupees (i) Towards Plot Area (ii) Towards Basic Infrastructure Development Charges (iii) Towards Other C....
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....cted on account of this only increases the value of the land (plot) and hence do not form a separate supply. 15. As for as the consideration separately shown to have been collected towards common amenities and facilities, the clauses in the agreement is verified and found the following: (a) The clause 17.1 of the agreement clearly states that the Promoter is going to construct a Club House at the location reserved for civic amenities in Future Development, which the Promoter has taken on lease/ allotment basis from the concerned authorities or on one of the plots in Additional Land. (b) The Purchasers are entitled to use the facilities and services of the Club House upon payment of subscription fees as prescribed by the Promoter or its nominees (c) The Club House shall be in complete control of the Promoter/ remain in exclusive ownership of the Promoter and the Promoter has the sole right and discretion to sell, lease, mortgage, encumber, construct buildings, complexes, etc. (d) The Promoter, at its own discretion, may also hand over the Club House to the Association of Owners/ Apex Body for maintenance and management of the Club House. 16.....
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....cipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" 19. The Applicant wants to know the applicability of GST if the sale price is a consolidated price which includes land cost, basic infrastructure development charges and other common amenities and facilities charges. There is only service of access to club house and common amenities and the same is considered as a supply as explained in para 14 supra and hence the value proportionate to club house and common amenities are applicable to GST. 20. In view of the foregoing, we pass the following RULING i. a) The applicant is not....