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2019 (3) TMI 924 - AAR - GSTValuation of supply of services - services provided from July 1, 2017 - two separate agreements, viz., one for ‘Sale of undivided share of land’ and the other for ‘Construction’ with the customers - CGST ACT 2017 read with Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017(as amended from time to time) - Held that:- Though there are two Agreements with separate consideration for this transaction, it is a single supply which is squarely covered under Sl.5 (b) of Schedule II making this transaction a supply of service as ‘Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly’ where consideration is being paid while construction. For the Supply of ‘Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier’, the value of the supply of service has been notified by the Government as per Section 15(5) of the CGST Act as the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply where the “total amount” means the sum total of consideration charged for construction service and amount charged for transfer of undivided share of land, as the case may be. The value of supply of services provided by the Applicant in the project ‘One Crest’ in Chennai, wherein the Applicant has entered into two separate agreements, viz., one for ‘Sale of undivided share of land’ and the other for ‘Construction’ with the customers, the measure of levy of GST on the supply of service of ‘Construction’ shall be 2/3rd of the total value charged for construction service and amount charged for transfer of undivided share of land, as per entry No. 3(i) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 as amended and No.II(2)/CTR/532(d-14)/2017vide G.O. (Ms) No. 72 dated 29.06.2017 as amended.
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