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TMI Blog2022 (5) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of civil construction of residential premises and supplying Works Contract' service as a sub-contractor to the main contractor (builder), who provides works contract service to construct affordable housing under PMAY scheme for the Economically Weaker Sections. 3. The applicant has sought advance ruling in respect of the following questions:- i. The applicability of Serial No.3(i) of Notification No.03/2019-Central Tax (Rate) New Delhi, the 29th March, 2019 (parent Notification No. 11/2017-Central Tax (Rate), dated the 28th June, 2017 as amended by Notification No.30/2018-Central Tax (Rate), dated the 31st December, 2018 to the applicant who is one of the sub-contractors to the builder / Developer / Contractor of Affordable housing under PMAY Scheme. ii. Eligibility of concessional rate of CGST at 0.75% as per the Notification No.03/2019-Central Tax (Rate) New Delhi, the 29th March, 2019 amended from time to time. 4. Admissibility of the application: The applicant, filed the instant application, in relation to applicability of notification, covered under Section 97(2)(b) of the CGST Act 2017 and hence the application is admitted. BRIEF FACTS OF THE CASE: 5. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a composite supply of works contract as per section 2(119) of the CGST/KGST Act 2017, for construction of Affordable Housing Project under low cost housing scheme, up to the carpet area of 60 sq. mts in metropolitan cities and includes civil work for construction of substructure for buildings (Flats/Units); Shuttering and Mivan Work; RCC Concrete work (incl. supply of concrete); supply of Reinforcement steel; Masonry work and Scaffolding and plastering and there will be no commercial construction. 5.4 The applicant relied upon the ruling of the Maharashtra AAR in case of M/s Prajapati Developers (GST-ARA-02/2018-Mumbai dated 05-04-2018) and CBEC clarification F.No.354/52/2018-TRU to support their contention that once the condition of more than 50% FSI being used for the construction of units less than 60 Sq. Mts. is fulfilled, the project would be considered as an Affordable Housing Project having infrastructure status as per the DEA Notification and no other Certificate from any authority is required for the same. 5.5 The applicant has also quoted the ruling of GST AAR Maharashtra in respect of M/s Puranik Construction Pvt. Ltd., (Appeal No.AAR No.GST-ARA-99/2018- 19/B-31) wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Sri A.S. Harihara Kumar, Company Secretary & Duly Authorised Representative of the applicant appeared for personal hearing proceedings held on 07-10-2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST 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. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by applicant's authorized representative during the hearing. We have also considered the issue/s involved on which advance ruling is sought by the applicant, relevant facts and the applicant's interpretation of law. 9. It is observed that the applicant has entered into an agreement of memorandum of understanding with M/s K.G Foundations Private Limited, Chennai for the construction of residential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit ledger or electronic cash ledger, an amount equivalent to the input tax credit attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that where a registered person (landowner- promoter) who transfers development right or FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments,- (i) the developer- promoter shall pay tax on supply of construction of apartments to the landowner-promoter, and (ii) such landowner - promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction of apartments by developer- promoter to him, provided the landowner-promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer-promoter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received. 3.Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)]. 12. It could be seen from the column 3 (description of the service) of entry number 3(i) of the principal notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by the Notification No.3/2019-Central Tax (Rate) dated 29.03.2019, effective from 01.04.2019 that, the concessional rate of 0.75% CGST is applicable only to the promoter in respect of the Construction of affordable residential apartments in a Residential Real Estate Project (herein after referred to as RREP) which commences on or after 1st April, 2019. The concessional rate is also applicable in case of an ongoing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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