TMI Blog2021 (1) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... plication - The benefit of reduced rate would be available to them only in the cases of supply effected after 25-1-2018 i.e. the date on which Notification 1/2018-Central Tax (Rate) dated 25-01-2018 was issued and the benefit of this reduced rate would be applicable in case of only those flats which are having carpet area upto 60 sq mtrs. in this scheme which is covered in the category of affordable housing. In case of other flats which have carpet area more than 60 Sq. Mtrs. the applicant would be required to pay GST at normal applicable rate. The construction services provided by the applicant under the project SAMANVAY RESIDENCY qualifies for the reduced CGST rate of 6% as provided in Sr. No. 3 item (v) sub-item (da) of Notification No. 01/2018-CT (Rate) Dated 25.01.2018. - GUJ/GAAR/R/56/2020 - - - Dated:- 30-7-2020 - SANJAY SAXENA AND MOHIT AGRAWAL, MEMBER Present for the applicant : Shri Priyam Shah M/s. Ashapura Buildcon, B-403, Millenium Plaza, Judges Bunglow Road, Vastrapur, Ahmedabad is a partnership company having a GSTIN: 24ABGFA7498H1Z4, filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that explanation 2 of the said Notification provides that, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply . 7. The applicant submitted that Notification No. 11/2017-CT (Rate) has been amended time to time to add certain services as well as to charge rate of GST towards supply of various Goods and Services or both. Notification No. 11/2017 CT (rate) amended vide Notification No. 01/2018-CT (Rate) dated 25.01.2018 vide which GST rate on specified construction services was reduced from earlier 18% to 12%, so in case of transfer of property in goods or services with land effectively GST rate becomes 8% after availing 1/3rd deduction towards value of land. Vide Notification No. 01/2018 CT (Rate) dated 25.01.2018 in Sr. No. 3 (v), new item (da) has been inserted to specify the rate of CGST as 6% in case of following services: Composite supply of works contract as defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea and exclusive open terrace area but includes the area covered by the internal partition walls of the apartment. Explanation For the purpose of this clause, the expression exclusive balcony or verandah area means the area of the balcony or verandah, as the case may be, which is apartment to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and exclusive open terrace area means the area of open terrace which is appurtenant to the net usable floor area of open terrace which is appurtenant to the net usable floor area of an appurtenant, meant for the exclusive use of allottee; 9. The applicant has submitted the Architect s Certificate with regard to the carpet area usage in the project under consideration. The Architect in his Certificate has stated that, it is evident that the project SAMANVAY RESIDENCY has total consumed/ Permissible FSI of 9342.61 Sq. Mtrs. Out of which 9084.81 Sq. Mtrs. F.S.I area are consumed by Flats having carpet area below 60 Sq. Mtrs. Therefore, the said housing project is using around 97% of total Floor Area Ratio (FAR)/ Floor Space Index (FSI) for dwelling units with carpet area @ of not more tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant has submitted that Projects SAMANVAY RESIDENCY started on 1st May 2017 and expected to complete in August 2019, this scheme has 5 block/ tower having Ground + 7 floors in each tower, total number of flats in the project/scheme are 154 and having 10 shops and flats are being developed over 3465 Sq.Mtrs of land. The total FSI of the scheme is of 9342.61 Sq. Mtr out, of which 9084.81 Sq. Mtrs. of FSI consumed in the flats having carpet area below 60Sq. Mtrs. The applicant have, whilst submitting Architect s Certificate in support, submitted that their housing project SAMANVAY RESIDENCY has total consumed/ Permissible FSI of 9342.61 Sq. Mtrs. Out of which 9084.81 Sq. Mtrs. F.S.I area are consumed by Flats having carpet area below 60 Sq. Mtrs. Therefore, the said housing project is using around 97% of total Floor Area Ratio (FAR)/ Floor Space Index (FSI) for dwelling units with carpet area @ of not more than 60 Sq. Mtrs. They have also submitted that their Scheme is approved by Ahmedabad Urban Development Authority (AUDA) vide No. PRM/347/12/2016/249 dated 27.04.2017 under the Building Type Residential Affordable Housing . 16. Notification No. 11/2017-Central Tax (Rate), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) the Affordable Housing in Partnership component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) ; or (f) . 17.1 Notification No.1/2018-Central Tax (Rate), dated 25-1-2018 has made amendments to Sr. No. 3, Column No. 3, item no. iv v the above Notification No. 11/2017 as follows:- In the said notification, (i) in the Table, - (a) against serial number 3, in column (3), - (A) in item (iv), - (I) for sub-item (c), the following sub-item shall be substituted, namely:- (c) a civil structure or any other original works pertaining to the In situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban); ; (II) after sub-item (d), the following sub-items shall be inserted, namely :- (da) a civil structure or any other original works pertaining to the Economically Weaker Section (EWS) houses constructed under the Affordable Housing in partnership by Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 13/6/2009-INF, dated the 30th March, 2017 is reproduced below:- With the approval of the Competent Authority, an updated Harmonized Master List of Infrastructure Sub-sectors (Annexure-I) is hereby notified. The new list incorporates the following changes to the notification dated 1st August, 2016; 1. Under the category of Social and Commercial Infrastructure a new sub-sector - Affordable Housing is added. Annexure-I Updated Harmonized Master List of Infrastructure Sub-sectors Sl.No. Category Infrastructure sub-sectors Transport Roads and bridges Ports Shipyards Inland Waterways Airport Railway Track, tunnels, viaducts, bridges Urban Public Transport (except rolling stock in case of urban road transport) Energy Electricity Generation Electricity Transmission Electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to extend the concessional rate of 12% (8% GST after deducting value of land) to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project, which has been given infrastructure status under Notification No. 13/06/2009 dated 30th March, 2009. The said notification of Department of Economic Affairs provides infrastructure status to Affordable Housing. The recommendation of the Council would extend the concessional rate to construction of flats/houses of less than 60 sqm in projects other than the projects covered by any scheme of the Central or State Government also. 21. In response to a request for clarification to enable availing 8% GST on Affordable Housing made by the builders association namely, CREDAI vide their letter no. CREDAI/MoF/2018/14, dated 19th March, 2018, the Government vide F. No. 354/52/2018-TRU, Government of India Ministry of Finance Department of Revenue (TRU) dated 7th May, 2018 has clarified that Low cost houses up to a carpet area of 60 square metres per house in an affordable housing project, which has been given infrastructure status under Notification F. No. 13/6/2009-INF, dated the 30th March, 2017 of MO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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