9911796707
TMI Blog2019 (8) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... of CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017 and under Section 97 of the KGST Act, 2017 read with Rule 104 of the KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a company incorporated under the Companies Act 1956 and is registered under the Goods and Services Act, 2017. The company has sought advance ruling in respect of the following questions: Applicability of GST on partially completed fiats i.e. a) Partially completed flats having identified customers before GST regime b) Partially completed flats, where customers are identified after implementation of GST regime, and c) Partially completed flats, where no customers are identi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally completed flats, tax is applicable on the value of work to be executed under GST and not on the value of work already executed under earlier law, irrespective of whether payments are received or riot. The Applicant submits that in terms of Honorable Supreme Court decision in the case of M/s Larsen and Toubro limited & another V/s State of Karnataka and another - (2013) 75 VST I = 2013 (9) TMI 853 - SUPREME COURT work executed, either under earlier law or under GST Law, amounts to "Works Contract" only from the stage of enter-mg agreement with customer. 3.5 The Applicant, in view of the above, concludes their view on the question raised, as under: (a) In respect of partially completed flats having identified customers before GST Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the following documents during personal hearing. (a) Commencement certificate issued by local authority (BBMP) (b) Copy of completion certificate containing Status of project i.e. percentage of completion obtained from Chartered Engineer. (c) Copy of application filed before the local authority (BBMP) seeking issuance of Occupany Certificate. (d) Copy of Hon'ble Apex Court decision in Larsen and Toubro Limited & another Vs State of Karnataka & another [2013] 65 VST 1. 5. FINDINGS & DISCUSSION 5.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Sanjay M Dhariwal, Chartered Accountant and authorised representative of the applicant during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) where tax paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. 5.4 Section 142(11)(b) provides that no tax shall be payable under the CGST /KSGST Act to the extent that tax was leviable under the erstwhile Finance Act, 1994 for the services rendered during the currency of the said Finance Act. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on certificate has not been issued by the competent authority. The first question is with regard to applicability of GST on partially completed flats where customers had been identified prior to 01.07.2017. In this situation, the agreement with the customer was executed in pre-GST regime i.e. prior to 01.07.2017. Therefore the Applicant is liable to pay service tax under the Finance Act 1994 proportionate to the services provided up to 30.06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017. 5.8 The Second question is with regard to applicability of GST on Partially completed flats, where customers are identified after implementati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w point. The applicant had not entered into any agreement with the customer prior to 01.07.2017. Therefore there was no event of supply to anyone. The applicant was engaged in the activity of construction on his own account. In this regard we draw reference to Section 15 of the CGST Act, 2017. Section 15(1) provides that the value of supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the Supplier and the recipients are not related and the price is the sole consideration for the supply. It is apparent from the aforesaid provision that the value to be adopted for the computation of tax amount has to be the transaction value, i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
