Home Case Index All Cases GST GST + AAR GST - 2021 (7) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 541 - AAR - GSTRate of GST - unbooked 11 units in the project , which did not get the approval for villa from local authorities before 31.03.2019 - levy of old GST rate or new GST rate - Whether the new tax rate of 7.5% (effective rate of 5% after excluding land portion), with no ITC, is applicable to the 11 unbooked units in the said VRINDHAVAN project? - applicability of answer given for the first question to 'VRINDHAVAN project to other similar projects in similar situations. HELD THAT:- On a conjoint reading of the definitions of the terms and the clarification of CBIC by FAQs under F.No. 354/32/2019 - TRU dated 07.05.2019, it is evident that the option envisaged under Item (if) of Sl No. 3 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019 is in respect of the entire ongoing project and not in respect of part of the project. Further, as is clarified by CBIC, even if the commencement certificate issued is only for part of the project, the same shall be treated as an ongoing project - Hence, as per provisions of the said notification, the option to pay tax at the old rate can only be exercised project-wise and not for part of project or individual apartments / villas comprised in a project. Therefore, the option exercised by the applicant for paying tax at the rate as specified in Item (if) of S1 No. 3 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019 in respect of the ongoing project “VRINDHAVAN” is applicable for the entire 20 villas comprised in the project and not for the 9 villas as claimed by the applicant. Whether the answer given for the first question to VRINDHAVAN project is also applicable to the other similar projects in similar situations? - HELD THAT:- The advance ruling is binding only on the applicant and the jurisdictional officer of the applicant. Hence the answer to the first question is applicable only to similar projects of the applicant in similar situations.
|