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2020 (8) TMI 529 - AUTHORITY FOR ADVANCE RULING, KERALARate of GST - Residential unit - construction of 45 individual residential houses - Benefit of Serial number (i), (v) or (va) of Notification No.11/2017-CT(R) dated 28.06.2017 as amended by Notification No. 03/2019 - CT (R) dated 29.03.2019 - services provided by the applicant to Sri Sathya Sai Trust for construction of low cost housing units for flood-affected individuals in Kerala - exemption from GST by Notification 12/2017- CT (R) dated 28.06.2017 as amended. HELD THAT:- The rate of GST prescribed under this entry applies to construction of affordable residential apartments by a promoter in a residential real estate project intended for sale to a buyer except where the entire consideration is received after issuance of completion certificate. Further, the rate under this entry applies where the supply of the services involves transfer of land or undivided share of land and its value is included in the amount charged from the buyer. As per Para 2 (zze) of Notification No. 12/2017 CT (Rate) dated 28.06.2017; “single residential unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family - The rate of GST applicable as per the above entry is 12%. The activity of construction of 45 individual residential houses at different locations on the land belonging to the individual beneficiaries undertaken by the applicant as per the agreement dated 16.11.2019 is rightly classifiable as composite supply of works contract as defined in Section 2 (119) of the CGST Act, 2017 supplied by way of construction of single residential units otherwise than as a part of a residential complex and is liable to GST at the rate of 12% as per Sl No.3 (v) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended.
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