TMI Blog2021 (7) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... should first be in place so that its possession or the rights in it may be transferred by the developer to the person supplying development rights - such transfer of possession or transfer of right in the building shall be accomplished by a conveyance deed or similar instrument such as allotment letter. As per Notification No.4/2018 the time of supply to determine liability to pay tax on development rights by a land owner to a developer is the date on which the building or the rights in an existing building are handed over to the land owner by way of a conveyance deed or an allotment letter - If the applicant has handed over the building after inception of CGST SGST, then the liability to pay tax will arise under CGST SGST. What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order) ***** 1. M/s. Vajra Infracorp India Private Limited, A.S.Raju Nagar, Kukatpally, Hyderabad- 500 072, (GSTIN No. 36AADCV9356L1ZN) have filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules, seeking Advance Ruling seeking clarification. 2. At the outset, it is made clear 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 me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey also placed their reliance on Notification No.4/2018 Central Tax (Rate) dated 25.01.2018 also but stated as Constructed complex , where in the above stipulation of service tax was adopted in toto. 5. Clarification Sought: 5. At Para 14 the applicant sought advance ruling on the following questions: Time of supply and point of taxation with respect to flats allotted to land owner by the builder by way of supplementary agreement on 15.05.2017(i.e., before GST regime) where as the construction will be completed during GST regime. 6. Further at Para 16(d) the applicant sought clarification on the following issues also: a. Is this date to be concluded as the date of allotment for payment of service tax in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay 2017 and therefore exempt under the present law i.e., GST. 8. Discussion Findings: We have considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri. Suresh, Cost Accountant, during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. At the outset, we would like to state 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 such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the TGST Act. We have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication regarding his liability under the CGST SGST Acts, in a situation where he has entered into an agreement with the land owner as a builder and later transferred the possession or right in the buildings so constructed. At the outset, the clarification for his liability must start from the question raised in the end of the application regarding the meaning of the phrase Constructed complex . This necessitates the application of principal of literal construction of statutes. v. The Hon ble Apex court in the case of Chandavarkar S R Rao Vs Ashalata S Gautam (1986) 4 SCC 477 held that, when the grammatical construction is clear and manifest without doubt, that construction must prevail unless there are strong and obvious reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be accomplished by a conveyance deed or similar instrument such as allotment letter. viii. It follows from the above that as per Notification No.4/2018 the time of supply to determine liability to pay tax on development rights by a land owner to a developer is the date on which the building or the rights in an existing building are handed over to the land owner by way of a conveyance deed or an allotment letter. ix. If the applicant has handed over the building after inception of CGST SGST, then the liability to pay tax will arise under CGST SGST. ADVANCE RULING 9. In view of the observations stated above, the following rulings are issued: Question raised Advance ruling issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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