Advance Ruling— In the instant case, the applicant is a partnership firm and is engaged in the business of construction & development of real estate project.
The applicant submits that the carpet area of commercial apartment (shops) is less than 15% of the total carpet area of the project. It falls under the definition of “Residential Real Estate Project”. As per the notification no. 03/2019-Central Tax (Rate) dated 29/03/2019 vide entry no. (ib) the said commercial apartments (shops) are chargeable to tax @5%. Duplexes will be chargeable to tax @ 5% vide entry no. 9(ia) as it does not satisfy the definition of “affordable residential apartments”.
Question on which Advance Ruling sought:
1. Whether item no. (i), (ia) & (ib) of Point no. (ii)(a) Of the notification no. 03/2019-Central Tax Rate dated 29/03/2019 is applicable project wise or apartment wise? Meaning hereby is that when a project consists of construction of some of the units which satisfies the definition of “Affordable residential apartment” & the construction of some of the units which does not satisfy the definition of “Affordable residential apartment” in that case whether the supplier can apply the GST rate as specified in item no. (i) on units which satisfies the definition of “affordable residential apartments” & GST rate as specified in item no. (ia) & (ib), as the case may be, on the units which are non-affordable residential units in the same residential real estate project?
2. With respect of our case, promoter is constructing affordable residential units as well as non-affordable residential units in “Residential Real Estate Project (RREP)”. In such case can the promoter apply separate GST rates in following manner in respect of construction of affordable residential apartments & non-affordable residential apartments in the same project (RREP)?
The applicant have not submitted sufficient documents to decide the Ruling on the question sought for, therefore we are not inclined to pronounce the Ruling in absence of proper documents. We are of the view that the ruling can be pronounced on the basis of proper documents in support of the questions and not on simple facts and assumptions. Hence application is not maintainable.
Held that— The application is not maintainable.