TMI Blog2022 (3) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... made as per the provisions of Section 15 of the GST Act. However, in case of apartments, the land value is fixed at one third of the value of the apartment involving the transfer of land along with the building, in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. In such cases, the value of land is calculated as per the above specification and no other value is acceptable for the said land value. - KAR ADRG 09/2022 - - - Dated:- 14-3-2022 - DR. M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by Sri Paresh Shah ,Charted Accountant and DAR ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s Pankaj Enterprises, Door No 29, Sharada Colony, 3rd Stage, 4th Block, 7th B Main Road, Basaveshwaranagar, Bengaluru-5600791, have filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with rule 104 of the CGST Rules, 2017 and 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 ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is an individual and is not registered under GST, but in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof, including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issue of completion certification is termed as Supply of Service . Thus, construction and sale of complex or building or civil structure supplied on receipt of amount / advance before obtaining the completion certification / first occupancy constitute supply of service and the activity is a taxable event under the CGST Act, 2017. In the instant case supply construction and sale of residential complex with more than eight dwelling units or commercial property exceeding the area of 500 sq. Meter is taxable under CGST Act, 2017 and the person engaged in supply of the same is required to register under Sec 22 of CGST Act, 2017 and liable for payment of Central GST / IGST on the value of supplies under Sec. 15 of CGST Act, 2017. 5. As per Section 15(1) of CGST Act, 2017, 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, including the non-monetary consideration, if any, where the supplier and the recipient of the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against serial number 3 of the Table above, involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value if transfer of land or undivided share of land, as the case may be, and the value of such transfer 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. Explanation . -For the purposes of this paragraph, total amount means the sum total of, - (a) consideration charged for aforesaid service; and (b) amount charged for transfer of land or undivided share of land, as the case may be including by way of lease or sublease. 7. Thus, from the above it is evident that transaction value in cases involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value of transfer of land or undivided share of land, as the case may be, and the value of such transfer of land or undivided share of land, as the case may be, in such supply shall be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch situations, additional consideration in the transaction needs to be examined. PERSONAL HEARING/PROCEEDINGS HELD ON 07.10.2021 5. Sri Paresh Shah, Charted Accountant and Duly Authorized Representative of the applicant appeared for personal hearing proceedings held on 07.10.2021 before this authority and they reiterated the contentions made in the application and also explained the process in detail. FINDINGS DISCUSSION 6. At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST, Act 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 7. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant and also their submissions made by their learned representati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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