2021 (2) TMI 42 - AAR - GST

Permission for withdrawal of application - sale of plots, commercial or residential by the developer applicant to the buyers - taxable supply of goods or service under section 7 of CGST Act, 2017read with clause No. 5 of schedule Ill? - appropriate classification / HSN code / SAC Code for sale of land (plots) and applicable rate of GST - input tax credit - HELD THAT - The authorized signatory of the applicant, vide letter dated 05.08.2020 addressed to this authority which was received in this office on 11.08.2020, has requested to withdraw their application without any personal hearing. Their request to withdraw the application is considered.

Summary

Issues:
1. Interpretation of provisions under CGST/RGST Act for advance ruling.
2. Admissibility of input tax credit and determination of tax liability.
3. Classification, HSN code, and rate of GST for sale of land.
4. Eligibility of input tax credit for the developer applicant.

Analysis:
The Authority clarified that unless specified, provisions of both the CGST Act and RGST Act are the same. The applicant, Trucity Developers LLP, sought an advance ruling on the admissibility of input tax credit and tax liability determination. Trucity Developers LLP, a limited liability partnership, purchased agricultural land for a township project. The LLP agreement outlined the partnership details and objectives related to real estate development. The project involved various land uses like residential, commercial, and facilities, with estimated supply values for different plot types.

The applicant inquired whether the sale of plots to buyers constitutes taxable supply under the CGST Act, and if so, the appropriate classification and GST rate. Additionally, they sought clarification on the eligibility for input tax credit under sections 16 to 18 of the CGST Act. The applicant later requested to withdraw their application without a personal hearing, which was accepted by the Authority.

In conclusion, the Authority accepted the withdrawal request of the applicant. The detailed analysis provided insights into the nature of the project, partnership structure, land use plans, and the applicant's queries regarding tax implications on the sale of plots. The ruling highlighted the importance of understanding the tax implications for real estate transactions under the GST framework.