2022 (3) TMI 1202 - AAR - GST

Scope of Advance Ruling application - Exemption from GST - supply of services of construction of residential houses under affordable housing scheme under Chief Minister's Awas Yojana - Applicability of Sl. No 10 of the Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017 - HELD THAT - The scope of the Advance ruling for Authority for Advance Ruling (AAR) is limited to the transactions being undertaken or proposed to be undertaken - In the instant case, the application seeking advance ruling was filed on 06.07.2021 before the AAR with respect to supplies undertaken for the period from 01.04.2019 to 31.03.2021. Hence the case is out of the purview of the Advance Ruling. The subject application for advance ruling made by the applicant is not maintainable and rejected under the provisions of the GST Act, 2017.

Summary

Issues Involved:
1. Eligibility of GST exemption for services provided by the applicant under Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017.

Issue-wise Detailed Analysis:

1. Eligibility of GST Exemption:

Applicant's Submission and Interpretation:
- The applicant, a registered entity under GST, is engaged in the supply of services for the construction of residential houses under the affordable housing scheme, specifically the Chief Minister's Awas Yojana-2015, which aligns with the Pradhan Mantri Awas Yojana.
- The applicant has an agreement with a builder for pure labor services involving various construction activities without the inclusion of materials.
- The applicant contends that their services fall under the exemption entry at Sl. No. 10 of Notification No. 12/2017-Central Tax (Rate), which exempts pure labor contracts for construction under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana from GST.
- The applicant references a similar case (M/s. Sevk Ram Sahu) where the ruling favored the exemption for pure labor services under the same notification.

Personal Hearing:
- The applicant reiterated their written submissions and requested an early disposal of the application.

Findings, Analysis & Conclusion:
- The agreement between the applicant and the builder was effective from 01.04.2019, with the contract duration specified from 01.04.2019 to 31.03.2021.
- The applicant sought an advance ruling on 06.07.2021 concerning the applicability of the exemption notification for services provided during the contract period.
- As per Section 95(a) of the CGST Act, 2017, an advance ruling pertains to supplies being undertaken or proposed to be undertaken by the applicant.
- The authority noted that the applicant's request for a ruling on transactions already completed (01.04.2019 to 31.03.2021) falls outside the scope of an advance ruling, which is intended for future or ongoing transactions.

Ruling:
- The application for an advance ruling is not maintainable as it pertains to past transactions. Consequently, the application is rejected under the provisions of the GST Act, 2017.