2019 (10) TMI 35 - AAAR - GST

Construction service - preferential location service (PLS) - Composite/principal supply - whether the supply of these services of PLS including floor rise, directional advantage constitutes a composite supply with construction service as the principal supply? - whether abatement prescribed for construction service under Sl. No. 3(i) read with Paragraph 2 of Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135-FT dated 28/06/2017), as amended from time to time is applicable on the entire value of such composite supply?

HELD THAT:- The abatement, which is allowed on the value of construction service, as the plot of land on which construction is done is not liable to GST, cannot be deemed to be applicable in respect of PLS, which is altogether a separate service having no association with the land - It is clear from the said categorization that PLS should come under category no. 3(iii) as the other two categories are clearly defined. Abatement to the extent of 1/3^rd of the total amount charged for supply of the service mentioned under Sl. No. 3(i) of the Rate Notification has been allowed under para 2 of the said Notification. No abatement has been provided for service mentioned under Sl. No. 3(iii) of the said Table.

Thus, no abatement prescribed for construction service under Sl.No. 3(i) read with paragraph 2 of notification No. 11/2017-CT (Rate) dated 28-06-2017 (corresponding State Notification No. 1135-FT dated 28/06/2017) as amended form time to time is applicable on the value of Preferential Location Service realised separately from the buyers.

Decision as above in respect of PLS will also hold for right to use car parking space.

Appeal disposed off.