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TMI Blog2020 (9) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... d share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply. Accordingly, the applicant contention to allow the deduction of actual value of land from the sale value on the grounds that their land value is ascertainable and other grounds is not legal in terms of para 2 of Not. No. 11/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No. 1/2018-C.T. (Rate), dated 25-1-2018. Further, the reliance of Rule 18(A) (A) of the erstwhile Gujarat Value Added Tax Rules, 2006 is not warranted in the instant case since the Value Added Tax Act is no more in existence. The Value Added Tax Act does not have any legal value in determination of GST liability since the value of supply is to be arrived in terms of the provisions of the GST Act. Thus, applicant is required to deduct one third value of land or undivided shares from the total value charged for the subject supply in terms of Para 2 of 11/2017-CT (Rate) dated 28.06.2017, as amended vide Not. No. 1/2018-C.T. (Rate), dated 25-1-2018. - GUJ/GAAR/R/33/2020 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2019/AR/10) - - - Dated:- 2-7-2020 - SANJAY SAXENA AND M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case the value of Land is clearly ascertainable. In that case actual cost of Land can be deducted for the for the purpose of arriving at the taxable value of supply ? Taxation under GST Regime: 6.1 The applicant submitted that when the amount of land to be deducted is not ascertainable, in such case a prescribed ratio/percentage is applied to determine the amount to be deducted. For example under the erstwhile Value Added Tax regime when amount of labour is not ascertainable for works contract transaction for deduction as per Rule 18(A)(A) of the Gujarat Value Added Tax Rules, 2006 below mentioned provision was made : Deduction of Charges towards labour, service etc.: (1) The value of the goods at the time of the transfer of property in the goods (whether as goods or in some other form) involved in the execution of a works contract shall be determined by deducting the amounts paid by way of price for sub-contract made with a registered dealer, if any , pertaining to the said work contract. (2) A registered dealer who claims any deduction referred to in sub-clause (c) of clause (30) of section 2 , shall- (a) Maintain true and correct records for such dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant s interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. The applicant has stated that they are engaged in the business of construction. For the purpose of the business, they buy land and develop residential/ commercial property on that land. For the purpose, they engaged Architects, consultants, structural engineers to prepare plan for the development of residential/commercial property; that on the basis of such plan and approvals, they enter into the agreement with prospective buyers for such residential /commercial property; the agreements entered into are for inclusive of land or undivided share of land basis. They construct such residential / commercial property by engaging labour machinery for the purpose and transfer such property to the buyers. 10. The applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply. Explanation. - For the purposes of paragraph 2, total amount means the sum total of, - (a) consideration charged for aforesaid service; and (b) amount charged for transfer of land or undivided share of land, as the case may be. 13. The said Paragraph 2 of Notification No. 11/2017-CT (Rate) was amended vide Not. No.1/2018-C.T. (Rate), dated 25-1-2018. The amended Paragraph 2 is reproduced as under: (ii) for paragraph 2, the following shall be substituted, namely :- 2. In case of supply of service specified in column (3), in item (i); sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi), against serial number 3 of the Table above, involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equiva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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