In respect of Partially completed flats having identified customers before GST regime, the Applicant is liable to pay service tax proportionate to the services provided up to 30.06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services provided effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017. In respect of partially completed flats, where customers are identified after implementation of GST, the Applicant is liable to pay GST on the transaction value of supply.
Levy of GST— In the instant case, applicant is engaged in construction and sale of residential apartments and residential complex based under joint development agreement.
Applicant has sought advance ruling in respect of the following questions:
Applicability of GST on partially completed flats i.e.
a) Partially completed flats having identified customers before GST regime
b) Partially completed flats, where customers are identified after implementation of GST regime, and
c) Partially completed flats, where no customers are identified.
The Applicant has admitted that their activity of construction related to immovable property falls under the definition of "Works Contract". Accordingly in terms of Schedule II of the CGST Act 2017 their activity is liable to be treated as a supply of service. The questions on which advance rulings have been sought by the Applicant are in relation to "works Contract service which had commenced in the pre-GST regime and continued / ended in the post-GST regime.
Held that— a) In respect of Partially completed flats having identified customers before GST regime, the Applicant is liable to pay service tax under the Finance Act 1994 proportionate to the services provided up to 30.06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services provided effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017.
b) In respect of partially completed flats, where customers are identified after implementation of GST, the Applicant is liable to pay GST on the transaction value of supply.
c) In respect of partially completed flats, where no customers are identified the applicant is not liable to GST as no supply is involved. However, if the supply is made prior to the issuance of completion certificate then GST is liable to be paid on the transaction value of supply, as answered in (b) above.
In respect of Partially completed flats having identified customers before GST regime, the Applicant is liable to pay service tax proportionate to the services provided up to 30.06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services provided effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017. In respect of partially completed flats, where customers are identified after implementation of GST, the Applicant is liable to pay GST on the transaction value of supply.
Levy of GST— In the instant case, applicant is engaged in construction and sale of residential apartments and residential complex based under joint development agreement.
Applicant has sought advance ruling in respect of the following questions:
Applicability of GST on partially completed flats i.e.
a) Partially completed flats having identified customers before GST regime
b) Partially completed flats, where customers are identified after implementation of GST regime, and
c) Partially completed flats, where no customers are identified.
The Applicant has admitted that their activity of construction related to immovable property falls under the definition of "Works Contract". Accordingly in terms of Schedule II of the CGST Act 2017 their activity is liable to be treated as a supply of service. The questions on which advance rulings have been sought by the Applicant are in relation to "works Contract service which had commenced in the pre-GST regime and continued / ended in the post-GST regime.
Held that— a) In respect of Partially completed flats having identified customers before GST regime, the Applicant is liable to pay service tax under the Finance Act 1994 proportionate to the services provided up to 30.06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services provided effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017.
b) In respect of partially completed flats, where customers are identified after implementation of GST, the Applicant is liable to pay GST on the transaction value of supply.
c) In respect of partially completed flats, where no customers are identified the applicant is not liable to GST as no supply is involved. However, if the supply is made prior to the issuance of completion certificate then GST is liable to be paid on the transaction value of supply, as answered in (b) above.