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2019 (8) TMI 472 - AAR - GSTLevy of GST - Activity of construction related to immovable property - works contract - applicability of GST - Partially completed fiats having identified customers before GST regime - Partially completed flats, where customers are identified after implementation of GST regime - Partially completed flats, where no customers are identified - Pre and post GST regime - section 142(11) of CGST/KGST Act 2017 - transitional provisions. Levy of GST - Partially completed fiats having identified customers before GST regime i.e., 1/7/2017 - HELD THAT:- In this situation, the agreement with the customer was executed in pre-GST regime i.e., prior to 1/7/2017. Therefore the applicant is liable to pay service tax under the Finance Act proportionate to the services provided upto 30/06/2017 and from 1/7/2017 onwards liable to pay GST proportionate to the services provided effective from 1/7/2017 in terms of section 142(11)(b) of CGST Act, 2017. Levy of GST - Partially completed flats, where customers are identified after implementation of GST regime- HELD THAT:- In these case, agreements for supply has been entered with the probable customers on or after 1/7/2017. It implies that the agreement has been entered prior to completion of the construction and also before issuance of completion certificate from BBMP, the competent authority - in the event that the agreements are entered into after 1/7/2017, the provisions of section 13 of the said act shall come into force and the applicant shall become liable to pay applicable tax. Value of supply for Partially completed flats, where customers are identified after implementation of GST regime - HELD THAT:- The applicant was engaged in the activity of construction on his own account - there was no event of supply to anyone - the value to be adopted for the computation of tax amount has to be the transaction value, i.e., the value at which the supply has been agreed upon. Levy of GST - Partially completed flats, where no customers are identified- HELD THAT:- The applicant admits that no customers are identified. Here we again draw attention to the provisions of Para 5 of Schedule II of the CGST Act, 2017. If the applicant completes the activity of construction and also obtains the occupancy/completion certificate from the competent authority and then -enters into a transaction with a recipient then the applicant is not liable to pay GST as such an activity/transaction then falls under Para 5 of Schedule III. In case the transactions are initiated prior to the issue of completion/ occupancy certificate then the scenario becomes identical to the second issue.
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