2020 (8) TMI 489 - AAR - GST

Permission for withdrawal of Advance Ruling application - levy of GST - rate of GST - Land owners share of constructed residential flats, since joint development agreement entered between Land owner and Builder entered before the commencement of construction of the building and constructed residential fiats handed over before Completion - Land owner's share of constructed residential flats, since Joint development agreement entered between Land owner and Building and Constructed residential flats hand over after completion. HELD THAT - The Application filed by the Applicant for advance ruling is disposed off as withdrawn.

Summary

Issues:
1. Applicability of GST on landowner's share of constructed residential flats under a joint development agreement entered before or after completion.
2. Determination of the GST rate and value applicable in the scenarios mentioned above.

Analysis:
The case involved an application for Advance Ruling by a partnership firm engaged in construction of residential apartments under a joint development agreement with a landowner. The firm sought clarification on the applicability of GST on the landowner's share of constructed residential flats in two scenarios: one where the agreement was entered before the building construction commenced, and another where the flats were handed over after completion. The applicant initially filed the application online but later submitted a physical copy requesting withdrawal.

The Authority for Advance Ruling disposed of the application based on the applicant's request for withdrawal. The ruling did not provide a detailed analysis or decision on the issues raised regarding the GST applicability and rates for the landowner's share of constructed residential flats. The disposal of the application without addressing the substantive questions indicates a lack of clarity on the tax implications in such joint development agreements. The ruling's brevity leaves room for uncertainty regarding the GST treatment in similar situations, highlighting the need for more comprehensive guidance or precedents in such matters.