TMI Blog2023 (1) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity proposed to be undertaken by the applicant - the applicant have not submitted any such documents by which it can be ascertain what types of activities have been permitted by the competent Authority to be carried out on the plot. The applicant has also failed to submit details of amenities to be provided in the plotted scheme and documents in support of it. The applicant also not disclosed/ submitted whether they proposed to construct any residential/ commercial construction on the plot or otherwise. In absence of specific activities proposed to be carried out by the applicant and lack of sufficient documents, the application does not have any locus standii - the application filed for Advance Ruling is not maintainable. - GUJ/GAAR/R/2022/53 - - - Dated:- 30-12-2022 - MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER Present for the Applicant : Kaushik Nahar (CS) M/s. Universal Industrial Park (herein after referred to as the applicant) is a partnership firm and not registered with GST. The Applicant has purchased land located at Survey No.105 (Old Survey No. 38/P3) 2. The Applicant has submitted that it may sale the whole plot on as is where is basis or alt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a principal supply; Illustration .- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; 5. The applicant has submitted that the intention of them is sale of Land which is principal supply. Other activities such as compound, leveling, laying of drainage etc is naturally bundled with the principal supply i.e. Sale of Land. Hence on this argument also, the activity of the Applicant is sale of Land not covered under the definition of supply and therefore not liable to GST. 6. The applicant further submit that though some element of service in the form of basic facilities is involved in the activity, but that activity cannot be separated and the part of the whole activity cannot be made taxable. For the purpose of taxability the intention of the transaction as a whole should be taken into construction. Article 366 (12A) of the Constitution defines goods and services tax as involving only supply of goods or services or both. Section 7 of the CGST Act, has made a clear distinction between stand alone supply of goods, stand alone supply of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which Service what will be the Service Accounting Code? IV. What will be the value on which GST will be payable? Whether any abatement available? V. What will be the rate of tax on which GST will be payable? VI. Whether Input Tax Credit will be available or not? Personal Hearing: 5. Personal hearing granted on Dt. 21-10-2022was attended by Shri Kaushik Nahar (CS) and he reiterated the submission. Revenue s Submission: 6. The Assistant Commissioner, CGST C. Ex. Commissionerate, Surat vide letter dated 10-11-22 has submitted comments on the question on which Advance Ruling is sought and is as follows : Sl.No. Question View of applicant 1. Whether the applicant is liable to pay GST on the sale of Land / Industrial Plot? In respect of sale of land As per Schedule III of the CGST Act, the land sale is neither considered a sale of goods nor a supply of services. The land is an immovable property, the sale of which attracts only stamp duty. Thus, GST does not apply to the sale of land when it exclusively relates to the transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions made by the Applicant in their application for advance ruling as well as the submissions made by authorised signatory, during the personal hearing proceedings on 20-10-22 before this authority. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant s interpretation of law. 8. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act 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 GGST Act. 9. In this case, main issue is to be decides as to whether GST is applicable on the sale of whole plot as such or sale of the individual plot after carrying out some activity. 9.1 For the sake of understanding, the relevant provisions are reproduced herein below: 5. Serial Number 5 to Schedule III of the CGST Act.-Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 11. From the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed to construct any residential/ commercial construction on the plot or otherwise. 16. We find that the applicant have not submitted any details or documents with regard to the charges/amount to be collected of the land sold as such without any activity or the individual plot. To decide the valuation for taxability it is must to know whether the charges are collected on super built-up basis or on the actual measure of the plot. The super built-up area includes the area used for common amenities, roads, water tank and other infrastructure on a proportionate basis and charges in carpet area includes only measurement of plot. 17. Thus, in view of the above discussion we find that in absence of specific activities proposed to be carried out by the applicant and lack of sufficient documents, the application does not have any locus standii . Thus, we are not in position to pronounce the Ruling on the application filed by the applicant. Therefore, we hold that the application filed for Advance Ruling is not maintainable. 18. In light of the foregoing, we rule as under - RULING The application is not maintainable in view of the above discussion. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
