9911796707
TMI Blog2019 (5) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... r project and not for commercial units. X X X X Extracts X X X X X X X X Extracts X X X X ..... all the flats/units will have residential carpet area of 60 Sq. Mts. or less and there will be commercial construction of units on the ground floor. They have stated that in this scenario it is also possible that they will get one contract for construction of residential portion in the 26 buildings and another contract for construction of commercial portion in the said 26 buildings. 2.4 The proposed contracts would include civil work for construction of substructure for buildings (Flats/Units); Shuttering and Mivan Work; RCC Concrete work (incl. supply of concrete); Supply of Reinforcement steel; Masonry work and Scaffolding and plastering work. 2.5 They have submitted that theirs is a composite supply of works contract by way of original works whereby LCH upto a carpet area of 60 sq. mts will be constructed in an Affordable Housing Project. They have reproduced the definition of the term 'Works contract' and the term Affordable Housing' as defined under the DEA Notification and have stated that all conditions under the above said Entry (v) (da) is satisfied by them and that the subject housing project can be considered as having infrastructure status as defined in the DEA Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upto 60 sq.mtrs & have also produced N .A. Order of Neral project to support their contention that the project is a housing project. 03. CONTENTION - AS PER THE CONCERNED OFFICER 3.1 The jurisdictional office has submitted that in the subject project of the total FSI of the project is being consumed for the construction of Low-Cost House and therefore the project would qualify as an AHP as per the DEA Notification. 3.2 Citing the decision of the Maharashtra AAR in case of Prajapati Developers, the jurisdictional office has supported the applicant's contention in of concessional rate of GST @12% in their case, on supply of works contract service in respect of Original Works pertaining to construction of a Low Cost House in an AHP and has stated that for the remaining commercial units no concession should be given. 04. HEARING 4.1 The Preliminary hearing in the matter was held on 10.01.2019, Sh. Gourav Sogani from ELP, Advocate & Solicitors appeared and requested for admission of the application. During hearing Jurisdictional Officer Sh. Sandeep Patil, State Tax Officer (THA-VAT-C-015) Thane appeared stated that they would be making submissions in due course. 4.2 The Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using under the column "Infrastructure sub sector" against the category of Social and Commercial Infrastructure and has further defined "Affordable Housing" as a housing project using at least 50% of the Floor Area Ratio (FAR/Floor Space Index (FSI) for dwelling units with carpet area of not more than 60 square meters and "Carpet Area" shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016. 5.6 One of the recommendations made by the GST Council in its 25th meeting held on 18th January, 2018 at Delhi was to extend the concessional rate of 12% (8% GST after deducting value of land) to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project which has been given infrastructure status under notification No. 13/06/2009 dated 30th March, 2009. The said notification of Department of Economic Affairs provides infrastructure status to Affordable Housing. The recommendation of the Council would extend the concessional rate to construction of flats/ houses of less than 60 sqm in projects other than the projects covered by any scheme of the Central or State Government also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Notification No. 11/2017, as amended since the project undertaken by them falls under the definition of "Affordable Housing" as also claimed by them in their application. The benefit of reduced rate would be available to them only in the cases of supply effected after 25.01.2018 i.e. the date on which Notification 1/2018-CentraI Tax (Rate) was issued and the benefit this reduced rate would be applicable in case of only those flats which are of carpet area upto 60 sq mtrs., in this scheme, which is covered in the category of affordable housing. In case of other flats which have carpet area more than 60 sq.mtrs. or commercial units, the applicant would required to pay GST at normal applicable rate, since the benefit of reduced rate is only for residential units of carpet area less that 60 sq-mts. 5.9 We have discussed the issue in detail in our order passed in the case of Prajapati Constructions and find that the subject issue is similar but with a slight variation i.e. in Prajapati Constructions, it was the who had raised the question and in the subject case it is the contractor providing composite supply to the developer, who is raising the question. We agree with the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X
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