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Supply of services for right to use of car parking space is a separate supply and not to be construed as a composite supply of construction of residential apartment services. In the instant case, supply of services for right to use of car parking space would be taxable @ 18%.

Classification of service— In the instant case, the applicant is stated to be in the business of construction of residential apartments intended for sale to buyers. It is submitted that the prospective buerys are given an option to opt for car parking space along with the apartment being booked by them and accordingly the buyers who opt for availing the car parking facility also, are charged a certain sum towards right to use of car parking space and the same forms part of the total consideration charged by the applicant towards sale of the apartment by the applicant.

The applicant has raised following question—

(a) Whether the amounts charged by the applicant for right to use of car/two wheeler vehicle parking space along with the sale of under constructed apartments to its prospective buyers is to be treated as a composite supply of construction of residential apartment services or the same is a distinct supply under Section 7 of the CGST/WBGST Act, 2017?

(b) If the same is not to be treated as a composite supply, then the rate of tax applicable on such charges collected by the applicant from its prospective customers?

(c) If such apartments are sold after receipt of completion certificate from the competent authority, then whether the amounts collected for right to use of car parking space will also be treated as a NON GST supply under Sch III of the CGST/WBGST Act, 2017 and no GST shall be payable on the amounts charged towards such right to use car parking space?

(d) Whether the taxability would change if such charges for right to use of car parking space is collected after the sale of the apartment has been done i.e. the customer had not opted for the car parking space at the time of purchase of the under constructed unit, but had sought for the same after the unit was handed over to the customer after receipt of the completion certificate?

Held that— Supply of services for right to use of car parking space is a separate supply and not to be construed as a composite supply of construction of residential apartment services.

In the instant case, supply of services for right to use of car parking space would be taxable @ 18%.

Even if apartments are sold after receipt of completion certificate from the competent authority, then tax is payable on supply of services for right to use of car parking space.

Supply of services for right to use of car parking space is a separate supply and not to be construed as a composite supply of construction of residential apartment services. In the instant case, supply of services for right to use of car parking space would be taxable @ 18%.

The applicant has raised following question—

(b) If the same is not to be treated as a composite supply, then the rate of tax applicable on such charges collected by the applicant from its prospective customers?

Held that— Supply of services for right to use of car parking space is a separate supply and not to be construed as a composite supply of construction of residential apartment services.

In the instant case, supply of services for right to use of car parking space would be taxable @ 18%.

Even if apartments are sold after receipt of completion certificate from the competent authority, then tax is payable on supply of services for right to use of car parking space.