2021 (10) TMI 624 - AAR - GST

Exemption from GST - amount received from the customers claiming the benefit of PMAY scheme - benefit of N/N. 01/2018 of central tax (rate) dated 25.01.2018 - HELD THAT - In view of the entry in N/N. 11/2017 dated 28.06.2017, if a person is acquiring a dwelling under the credit linked subsidy scheme for economically weaker section fulfilling all the conditions and formalities from designated banks/financial institutions under such scheme then he is eligible for the concessional rate of tax under the said notification. Thus, the notification is applicable if the condition of credit linked subsidy scheme is availed under PMAY(Urban).

Summary

Issues:
Applicability of Notification No. 01/2018 of central tax (rate) dated: 25.01.2018 on amount received from customers claiming PMAY scheme benefit.

Analysis:

Issue 1 - Applicability of Notification No. 01/2018:
The applicant, engaged in construction and sale of residential flats, sought clarification on the applicability of Notification No. 01/2018 of central tax (rate) dated 25.01.2018 concerning customers claiming benefits under the PMAY scheme. The Authority for Advance Ruling admitted the application after verifying the payment of the requisite fee and receiving no objection from the jurisdictional officer. During the personal hearing, the authorized representatives reiterated the application's contentions. The Authority referred to the specific entry in Notification No. 01/2018, which pertains to houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MIG-1)/ Middle Income Group-2 (MIG-2) under the Pradhan Mantri Awas Yojana (Urban). It was clarified that if a person acquires a dwelling under this subsidy scheme from designated banks/financial institutions, they are eligible for the concessional tax rate as per the notification.

The ruling issued by the Authority confirmed that Notification No. 01/2018 of central tax (rate) dated 25.01.2018 is applicable to the amount received from customers claiming the benefit of the PMAY scheme, provided they fulfill the conditions of the credit linked subsidy scheme under PMAY (Urban). This decision aligns with the specific provisions outlined in the notification, ensuring clarity for the applicant regarding the tax implications related to customers availing benefits under the PMAY scheme.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the applicant's queries, the Authority's discussion and findings, and the final ruling issued in relation to the applicability of Notification No. 01/2018 of central tax (rate) dated 25.01.2018.