Rate of tax (service)— In the instant case, the applicant is stated to be involved in construction of property used for residential purpose.

The issue involved in the instant case is to decide whether the project which is currently under construction by the applicant shall be regarded as a Residential Real Estate Project (RREP) and whether the same shall qualify as affordable residential apartment as defined in the relevant Notification and what would be the applicable rate of tax.

The applicant has also raised his doubt towards applicability of new tax rate of 1% effective from 01.04.2019 on the ground that the said property or the firm is not registered under any affordable housing scheme of the Central or State Government. In this context, we find that the schemes which are notified as affordable residential apartment are applicable only for an ongoing project in respect of which the promoter has not exercised option to pay tax on construction of apartment at the rates specified for items (ie) or (if) against Sl No, 3 of the relevant Notification.

As the instant project has commenced after 01.04.2019, it cannot be termed as ongoing project. Hence, we are of the opinion that affordable housing scheme of the Central or State Government, as pointed out by the applicant is not applicable for the instant project.

Held that— The project referred to in the instant application which is currently under construction by the applicant is a Residential Real Estate Project (RREP) as defined under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.

GST rate to be charged from customers for sale of flats in the said project, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, shall be 1.5% (0.75% CGST and 0.75% SGST), as further reduced by 1/3rd to factor in the value of land.