Rate of tax— The question / issue before Your Honor is eligibility of Notification 01/2018-Central Tax (Rate) dated 25.01.2018 which provides for concessional rate of GST @ 12% on supply of works contract service in respect of Original Works pertaining to construction of a Low Cost House in an AHP.

Held that—We agree with the applicant’s submission that entry (v) (da) of Notification 01/2018, mentioned above, no-where restricts the benefit to a ‘Developer’ only. The Notification entry is qua the supply of service and not qua the person and therefore once a project qualifies as an AHP, the benefit of concessional rate of tax would be available in respect of works contract services pertaining to Low Cost Houses, irrespective of it supplied by the or the Contractor. In the subject case the project qualifies as an AHP, and the benefit of concessional rate of tax would thus be available to the applicant.

The applicant will be eligible for concessional rate @ 12% in the project as per the facts as seen above. The concessional rate will applicable only for residential units of upto 60 sq mts., in their project and not for commercial units.—Puranik Construction Pvt. Ltd., In Re…. [2019] 10 TAXLOK.COM 088 (AAR-Maharashtra)