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TMI Blog2022 (4) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... o make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression %ST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 M/s RomeII Real Estate Private Limited (Applicant) having GSTIN 27AAACR2503C1Z1 is undertaking certain Residential Real Estate Projects (RREP) primarily having residential apartments with a carpet area up to 60 sq. mts. Applicant wants to know whether Entry No. 3(v) (da) of Notification 11/2017-CT (Rate) dated 28/06/2017, as amended time to time, applies to the 'works contract service' received from its contractors. 2.2 The details of the Project "Amore" with carpet area (sq. mts.) are as under: Type Total No. of Units Total Area Total area of residential units below 60 sq.mts. Total area of residential units below 60 sq. mts. 2 BHK 84 212.40 4459.71 65% 1 BHK 62 115.03 2377.75 35% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable, to the extent of area attributable to the affordable units. 2.8 Further, applicant submits that a cogent reading of Sections 95(a) and 97(2) of the CGST Act, 2017, doesn't deny the application of AAR by the person who is receiving the goods or services or both as, an applicant to obtain the Advance Ruling. 2.9 Further, the Notification entry is qua the supply and not qua the person and therefore once a project qualifies as an Affordable Housing Project, the benefit of concessional rate of tax would be available in respect of 'work contract services' pertaining to low-cost houses, irrespective of it being supplied by the Developer or the Contractor. Also, the impugned question is with respect to applicability of rate on the specified supply of works contract services in respect of affordable housing project and thus, the question is qua the supply than qua the person. 03. CONTENTION - AS PER THE CONCERNED OFFICER: Officer Submission dated 03.02.2022- 3.1 The Applicant, M/s. Rome!! Real Estate Pvt. Ltd., a developer receives 'works contract services' from contractors. The subject works contract entered into by the contractors with the Applicant is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng pool etc. are not covered under the descriptions as specified in Sr. No. 3(v)(da) of Notfn 11/2017 as amended by Notfn. 1/2018. The works contract services provided for the construction of these amenities is not covered under the ambit of the concessional rate & no such benefit would be applicable to the works contract services supplied in relation to such amenities. This is in line with the ruling of the GST AAR Maharashtra in the case of M/s. Shapoorji Pallonji and Co. Ltd. (Order No. GST-ARA-29/2019-20/B-123 dated 26.12.2019). 3.5 The Authority may decide as to whether the project with club house, swimming pool and other amenities still qualifies to be 'low cost houses in an affordable housing project' in terms of the said notification. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 12.10.2021. Authorized representative of the Applicant, Shri. Pritam Mahure, C.A. was present. Jurisdictional Officer was absent. Application is admitted subject to condition that applicant will file/produce the written submission as to how the recipient of supply can seek advance ruling. 4.2 The application was admitted and called for final e-hearing on 22.02.2022. Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal officer in respect of the applicant." The aforesaid sub-section, thus, categorically speaks that the ruling pronounced is binding only on the applicant and on the concerned officer or the jurisdictional officer in respect of the applicant. If an application is filed by the recipient of goods or services or both on the taxability of his inward supply of goods or services and ruling is pronounced accordingly, such ruling shall be binding only on him and on the concerned officer or the jurisdictional officer of him. In no way, the ruling shall be binding on the supplier of such goods or services. To illustrate, say M/s X of Maharashtra receives inward supply of goods from M/s Y (Location of M/s. Y May be in Maharashtra or may be in other states). M/s. X files an application of advance ruling seeking the taxability of his inward supply. The Advance Ruling Authority may pronounce ruling declaring the supply to be an exempt supply. However, since the same is not binding on his supplier, the supplier may not follow the ruling and even find the supply as a taxable supply. In such a scenario, the ruling loses its relevance and applicability. Any provisions of the Law, therefore, sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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