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2024 (3) TMI 256 - AUTHORITY FOR ADVANCE RULING, KERALARate of tax - Whether the rate mentioned Notification No. 3 of 2019 in Clause(ii) a(i) for affordable residential apartments and rate mentioned in Clause (iii) (a) (ia) for other than affordable residential apartments can be effectively levied in a single project/ building that is being developed as Residential Real Estate Project? - HELD THAT:- On a plain reading of the entries at Item (i) and (ia) of SI No. 3 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, it is evident that the rate of GST prescribed under the entry at Item (i) applies to construction of affordable residential apartments and under the entry at Item (ia) applies to construction of residential apartments other than 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. On a conjoint reading of the entries at Item (i) and (ia) of SI No. 3 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017; the definition of the terms "apartment"; "residential apartment"; "affordable residential apartment"; 'Teal estate project"; residential real estate project" and "promoter", it is clear that the rate of tax prescribed in Item (i) and (ia) of SI No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 is in respect of construction services supplied for affordable and other than affordable residential apartments respectively in a residential real estate project. Therefore, the services of construction of affordable residential apartments and the services of construction of other than affordable residential apartments in a residential real estate project attract GST at the rate of 1.5% [0.75% - CGST + 0.75% - SGST] and 7.5% [3.75% - CGST + 3.75% - SGST) respectively as per entries at Items (i) and (ia) of SI No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 subject to the conditions prescribed under the respective entries.
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