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TMI Blog2019 (9) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... he person and therefore once a project qualifies as an AHP, the benefit of concessional rate of tax would be available in respect of works contract services pertaining to Low Cost Houses, irrespective of it being supplied by the Developer or the Contractor. The applicant s case is covered under the tax rate of 12%, under Heading 9954 (Construction Services), (v) (da) of above mentioned 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-Central Tax (Rate) was issued and the benefit of 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. Answered in the affirmative. - GST-ARA-143/2018-19/B-95 - - - Dated:- 23-8-2019 - SHRI B. TIMOTHY, AND SHRI B. V. BORHADE, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parking level floor plus twelve residential floors, with 70 numbers of apartment in each wing more particular described herein below as... (A) La-Riveria A Wing consisting... (i) 30 Nos. of 2 BHK apartments having its RERA carpet area of 4 7.47 Sq. Mt. (ii) 10 Nos. of 1 BHK apartments having its RERA carpet area of 28.24 Sq. Mt. (iii) 20 Nos. of 2 BHK apartments having its RERA carpet area of 48.96 Sq. Mt. (B) La-Riveria B Wing consisting... (i) 10 Nos. of 1 BHK apartments having its RERA carpet area of 28.24.Sq. Mt. (ii) 30 Nos. of 2 BHK apartments having its RERA carpet area of 47.47. Sq. Mt. (iii) 18 Nos. of 2 BHK apartments having its RERA carpet area of 48.96 Sq. Mt. (C) La-Riveria A Wing 12th and 13th Floor consisting... (i) 04 Nos. of2 BHK apartment having its RERA carpet area of 48.96 sq. Mt (ii) 01 No. of I BHK apartment having its RERA carpet area of 28.24 Sq. Mt.. (iii) 05 Nos, of 2 BHK apartment having its RERA carpet area of 47.47 Sq. Mt (D) La-Riveria B Wing 12 134 proposed floor consisting... (i) 05 Nos. of 2 B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. who further provides the construction service under Sl. No. 3-item (V) - sub item (da) vide notification no. 01/2018-CT (Rate) dated 25-01-2018. 3B. Statement containing the applicant s interpretation of law and/or facts. as the case may be. in respect of the aforesaid question(s) 1) The project La-Riveria qualifies to be an affordable housing project which has been given infrastructure status vide notification of Govt of India and thus attracts the benefits of lower rate of GST@12% [CGST @ 6% SGST @ 6%) w.e.f. 25-01-2018 under the Sl. No. 3-item (V) - sub item (da) vide notification no. 01/2018-CT(Rate) dated 25-01-2018. The effective Tax Rate would be 8% after reducing 1/3rd towards value of Land. 2) Service falls under SI No. 3, heading 9954 (Construction Service), item (V)- sub item(da) describes as Composite Supply of Works Contract as defined in clause (119) of section 2 of the Central Goods Service Tax, 2017, Supplied by way of Construction, Erection, Commissioning or installation of original works pertaining to, Low cost houses up to a carpet area of 60 Square meters per house in an affordable housing project which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re are 140 apartments to be constructed in the said project with each apartment having an area of less than 60 sq. mt. carpet. The applicant has submitted that they are providing Works Contract Service to Lakhani by way of construction of the said residential project, as per contract awarded to them by Lakhani. However they have also submitted that the contract is awarded with specific scope of work more particularly limited only to Excavation, RCC Work, Brick Work, Plaster Work and Water Proofing Work, vide their Work Order dated 17.04.2014 . In respect of such supply, applicant wants to know whether they are entitled to lower GST rate as provided in SI. No: 3, Item (v), sub item (da) of Notification no: 01/2018-CT (Rate) dated 25-01-2018 and have accordingly raised their query. As per Sr. No. 3, column 3, item (v) sub-item (da) of Notfn. No. 1/2018-C.T. (Rate) dated 25.01.2018, low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017 wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers/developers are expected to follow the principles laid down under Section 171 of the GST Act (Anti-Profiteering Rules) scrupulously. In response to a request for clarification to enable availing 8% GST on Affordable Housing made by the builders association namely, CREDAI, vide their letter no. CREDAI/MoF/2018/14 dated 19th March, 2018, the Government, vide F.No. 354/52/2018-TRU, G.O.I, M.O.F., Deptt. of Revenue (TRU) dated 7th May, 2018 has clarified that Low cost houses up to a carpet area of 60 .square metres per house in an affordable housing project, which has been given infrastructure status under notification F. No. 13/6/2009-INF, dated the 30th March, 2017 of MOF (DEA), attract concessional GST of 8% (the value of the undivided share of land is included in the price of the house). Whether the housing project qualifies as affordable housing project or not, shall be determined by the builder/ developer asper the definition of affordable housing given in the above mentioned notification (i.e., affordable housing has been defined as a housing project using at least 50% FAR/FSI for dwelling units with carpet area of not more than 60 SQM).No certificate from any aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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