Deemed land value deduction invalidated: mandatory fixed fraction rule optional where actual land price is ascertainable.
The Gujarat High Court held that GST on construction services must be levied on the actual price where that price is ascertainable, declaring the blanket deeming of a fixed land fraction in Notification No.11/2017 ultra vires. Deeming fictions apply only when actual value cannot be determined; agreements specifying land price permit deduction of that actual value. The Court read down the notification to make the deemed deduction optional and directed that valuation rules be used where declared land or construction values are doubtful. (AI Summary)