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TMI Blog2021 (8) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... th Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of 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 private limited company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively) engaged in the business of executing construction contracts. 3. The applicant has sought advance ruling in respect of the following question:- i. Whether the construction service provided by the Applicant to M/s. Provident Housing Limited under the project "Provident Neora & Provident Capella" & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Provident Neora" & "Provident Capella" & details are as under. SI.No. Name of the Project No of Apartments Carpet Area of the project/each apartment Date of Commencement of the Project 1 Provident Neora 763 Less Than 60 Square meter November 2018 Onwards 2 Provident Capella 249 Less Than 60 Square meter October 2019 onwards 3 Provident Parksquare 2070 Some of them are less than 60 sq. mtr. and some are more than 60 sq mtr 6. Applicant's Interpretation of Law: 6.1 The applicant is of the view that the projects qualify as affordable housing project since more than 50% of the units are less than 60 square metres. 6.2 The applicant contended that Provident Neora, Provident Capella, Provident Parksquare qualifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfrastructure status as per the above notification. 6.5 By relying on the above entry, any person providing the composite works contract would be eligible to apply the rate of tax of CGST 6% and SGST 6% irrespective of whether he is the developer, main contractor or sub-contractor since no such restrictions have been envisaged in the said entry. 6.6 The applicant is of the view that the supply made by them does not fall under entry (i), (ia), (ib), (ic), (id), (ie) and (if) since they are not developers and not selling the units to the customers. Hence, this requirement is also fulfilled. 6.7 The applicant has also given inference of the advance ruling passed in the case of M/s Yash Nirman Engineers and Contractors, the learned Advance R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of "Provident Parksquare" and two projects from M/s Provident Housing limited in the name of "Provident Neora" & "Provident Capella". 11. The applicant desires to know whether his services supplied to the developer is covered under Entry No. 3(v)(da) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017 (hereinafter the Rate Notification), as amended from time to time. 11.1 The entry 3(v)(da) reads as under: "(v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 201 7, supplied by way of construction, erection, commissioning, or installation of original works pertaining to, - (da) low cost houses up to a carpet area of 60 square metres per house in an affordab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks contract as per section 2(119) of the CGST Act, 2017. 13. Secondly, coming to the meaning of the term "original works", clause (zs) of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 provides for the meaning of "Original works" as under:- "(zs) "original works" means- all new constructions; (i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (ii) erection, commissioning or installation of plant, machinery or equipment or structures, whether prefabricated or otherwise; Though the above definition is in relation to Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, the same can be used for the interpretation of the term "original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 3(v)(da) of Notification 11/2017 Central Tax (Rate) dated 28.06.2017, but covered under Entry No. 3(xii) of Notification 11/2017 Central Tax (Rate) dated 28.06.2017 and liable to tax at the rate of 9% under the CGST Act, 2017 and at 9% under the SGST Act. 15. In view of the foregoing, we rule as follows RULING The construction service provided by the applicant to M/s. Provident Housing Limited under the projects "Provident Neora and Provident Capella" and to M/s. Puravankara Limited under the project "Provident Parksquare," are liable to tax at the rate of 6% under the CGST and at the rate of 6% under KGST Act as provided in SI.No.3-Item (v)-sub item (da) of Notification No. 11/2017-CT (Rate) dated 28-06-2017, if the projects are aff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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