Home Case Index All Cases GST GST + AAAR GST - 2021 (6) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 1093 - AAAR - GSTValuation - Statutory charges i.e. External Development Charges and Infrastructural Development Charges recovered by the Applicant from buyers and paid further to respective Government Authorities - forming part of value of taxable supplies being made by the Applicant or not - HELD THAT:- In the Appellant's case however the under relevant law viz. the HDRUA (Haryana Development and Regulation of Urban Areas) Act 1975, the External Development and Infrastructure Development charges are meant to meet, respectively, the cost of external development work to be carried out in respect of an individual infrastructure project viz. a colony, and the cost on developing infrastructure projects development in the State - As per the Act, it is charged 'per square metres of the gross area and of the covered area of all the floors in case of flats proposed to be developed by him into a colony'. Further it is to be paid 'in two equal installments. The first installment shall be deposited within 60 days from the date of the grant of the license and the second installment to be deposited within six months from the date of grant of license'. It is not related to the sale of the flats. Similarly for the EDC the Licensee has 'to pay proportionate development charges if the external development works as defined in clause (g) of section 2 are to be carried out by the Government or any other local authority. The proportion in which and the time within which, such payment is to be made, shall be determined by the Director - Both are not related with the number of flats to be constructed/sold or are to be paid even if the some/all flats kept for personal use. Since, the 'External Development' and 'Infrastructure Development' do contribute to the value of the flats, the charges for these beyond doubt form a constituent of the value of the construction service provided to the flat owners by the Appellant. The GST shall be applicable, as also provided under Section 15(2). Appeal dismissed.
|