TMI Blog2020 (9) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the promoter has not exercised the option to pay tax at the rate specified in (ie) or (if) of Entry No. 3, having carpet area not exceeding 60 sqm in metropolitan cities or 90 sqm in cities or towns other than metropolitan cities and for which the gross amount charged is not more than 45 lakh - It is ascertained from the WBHIRA website that the project is under construction and the flats offered on sale are partly booked. The flats having a carpet area of 60 sqm or less per unit in the RREP qualify as affordable residential apartments, provided the gross amount charged per unit does not exceed ₹ 45 lakh and the promoter has not exercised the option to pay tax at the rate specified in (ie) or (if) of Entry No. 3. It now needs t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommunication of this ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed under Section 100 (3) of the GST Act, and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the application 1.1 The applicant is the promoter of residential real estate project, supplying construction service in developing a residential housing project named Akriti (hereinafter the RREP) in Burdwan. The applicant wants to know whether Entry No. 3(v)(da) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017 (hereinafter the Rate Notification), as amended time to time, appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t object to the admissibility of the application. The application is, therefore, admitted. 2. Submissions of the Applicant 2.1 The applicant submits that half of the total number of dwelling units being constructed measures less than 60 sqm of carpet area for each such unit. It is, therefore, an affordable housing project in terms of Notification No. 13/06/2009 INF dated 30/03/2017 of Department of Economic Affairs, Government of India. The works contract service provided for construction of the project is, therefore, taxable under Entry No. 3(v)(da) of the Rate Notification. 2.2 In the course of the personal hearing, the applicant submits (i) detailed written submission, (ii) project plan, (iii) certificate from the authorised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that satisfies all the following conditions: (a) The Competent Authority has issued the certificate of commencement on or before 31/03/2019, and any of the professionals mentioned under the said clause shall certify that construction of the project started on or before 31/03/2019. (b) If no commencement certificate is required, the certificate as above for starting the construction on or before 31/03/2019. (c) The completion certificate had not been issued, or the first occupation of the project did not take place on or before 31/03/2019. (d) The apartments being constructed were partly or wholly booked on or before 31/03/2019. Explanation : For the purpose of clauses 4(xx) (a) (b), the construction shall be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 45 lakh and the promoter has not exercised the option to pay tax at the rate specified in (ie) or (if) of Entry No. 3. It now needs to be ascertained whether the RREP is an affordable housing project, which enjoys infrastructure status vide the AHP Notification. 4.7 Affordable housing has been defined in the AHP Notification as a housing project using at least 50% of FAR/FSI for dwelling units with a carpet area of not more than 60 sqm. The term 'carpet area' has been assigned the same meaning as in section 2(k) of the Real Estate (Regulation and Development) Act, 2016. It means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, balcony or veranda and open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification, provided the applicant does not opt for paying tax at the rate specified in (ie) or (if) of Entry No. 3. RULING The works contract service for the construction of those dwelling units in the project named 'Akriti' (WBHIRA Registration No. HIRA/P/PUR/2018/000003) that are affordable residential apartments in terms of clause 4(xvi) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017, as amended time to time, are taxable under Entry No. 3(v)(da) of the said notification, provided the applicant does not opt for paying tax at the rate specified in Entry No. 3(ie) or 3(if). This ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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