The services of construction of all the 12 different types of residential apartments during the period from 01.07.2017 to 31.03.2019 is liable to GST at the rate of 18%.
Authority for Advance Ruling —Taxability on construction of Flats – The applicant is engaged in the construction of flats in Thiruvananthapuram. The applicant sought an advance ruling as to what is the rate of tax for services provided, to the customers for the period 01.07.2017 to 31.03.2019 as per Notification No. 11/2017 dated 28.06.2017 on various size Flats; what is the value of services, for services for the period 01.07.2017 onwards for which appropriation towards undivided share of land was already done in pre - GST period; whether the one-third deduction as provided for in Para 2 of Notification No. 11/2017 can again be taken where the value of undivided share already appropriated is lower than one-third of the total amount receivable for project including land value; what is applicable rate of tax for the period after 01.04.2019 where option was already exercised in the following categories of flats and eligibility for 1/3rd deduction; in the event of cancellation of residential flats by any customer, whether the relevant date for application of refund of taxes already paid on advances is to be reckoned from date of payment voucher giving back the refund to the customer or is to be reckoned from the date of filing GSTR-3B for the month in which the tax on advances received were paid.
Held that:- The Hon’ble Authority for Advance Ruling held that the services of construction of 12 different types of residential apartments during the period from 01.07.2017 to 31.03.2019 is liable to GST at the rate of 18% as per Item (i) of SI No. 3 of Notification No. 11/2017-CTR dated 28.06.2017. The provisions of Para 2 of Notification No. 11/2017 will apply for determining the taxable value of the services rendered for the period from 01.07.2017 and accordingly one-third of the total amount charged for the supply shall be deemed to be the value of land or undivided share of land involved in the supply. In the event of cancellation of Flats, the relevant date for filing of refund application is the date of payment of tax as prescribed in clause (h) of Explanation 2 of Section 54 of the CGST Act, 2017.
The services of construction of all the 12 different types of residential apartments during the period from 01.07.2017 to 31.03.2019 is liable to GST at the rate of 18%.
Authority for Advance Ruling —Taxability on construction of Flats – The applicant is engaged in the construction of flats in Thiruvananthapuram. The applicant sought an advance ruling as to what is the rate of tax for services provided, to the customers for the period 01.07.2017 to 31.03.2019 as per Notification No. 11/2017 dated 28.06.2017 on various size Flats; what is the value of services, for services for the period 01.07.2017 onwards for which appropriation towards undivided share of land was already done in pre - GST period; whether the one-third deduction as provided for in Para 2 of Notification No. 11/2017 can again be taken where the value of undivided share already appropriated is lower than one-third of the total amount receivable for project including land value; what is applicable rate of tax for the period after 01.04.2019 where option was already exercised in the following categories of flats and eligibility for 1/3rd deduction; in the event of cancellation of residential flats by any customer, whether the relevant date for application of refund of taxes already paid on advances is to be reckoned from date of payment voucher giving back the refund to the customer or is to be reckoned from the date of filing GSTR-3B for the month in which the tax on advances received were paid.
Held that:- The Hon’ble Authority for Advance Ruling held that the services of construction of 12 different types of residential apartments during the period from 01.07.2017 to 31.03.2019 is liable to GST at the rate of 18% as per Item (i) of SI No. 3 of Notification No. 11/2017-CTR dated 28.06.2017. The provisions of Para 2 of Notification No. 11/2017 will apply for determining the taxable value of the services rendered for the period from 01.07.2017 and accordingly one-third of the total amount charged for the supply shall be deemed to be the value of land or undivided share of land involved in the supply. In the event of cancellation of Flats, the relevant date for filing of refund application is the date of payment of tax as prescribed in clause (h) of Explanation 2 of Section 54 of the CGST Act, 2017.