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TMI Blog2020 (12) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... enclosing dully filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachments. The applicant in his application has sought advance ruling on following questions- 1. If any Flat buyer otherwise qualified to get lower rate of GST under CLSS Scheme, get interest Subvention certificate and/or Interest subsidy in his / her bank account after 1.1 Tower / Building get Completion Certificate from Competent Authority, or 1.2 Expiry of six months from end of financial year Can builder pass-on benefit of lower rate of GST to this flat buyer in such situation? And How? 2 How can builder get GST Credit adjustment if builder does not have future GST liability in this project? 3 Will builder be entitled to GST refund if amount is not adjustable from future liability of GST under the project? 4. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 5. The applicant has submitted that- (i) they built a residential complex which got completion from competent authorities on 30th Sept 2019. Maximum number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilder against his future GST liability (by issue of credit notes). It is pertinent to point out here that the definition of taxable supply given in GSTR-3B, excludes value of credit notes. This means that the GST liability on the date off iling of return by the builder gets proportionate reduced on account of credit note issued. "[Credit notes can be issued by the builder/developer, inter alio, when the tax charged in a tax invoice is found to exceed the tax payable in respect of such supply, under section 34 of CGST Act. The same shall contain the particulars prescribed under rule 53 of CGST Rules including name and address of the recipient of the flat.]" (vi) On the basis of above clarification, builder can charge reduced rate of GST but as per GST Act and Rules they can adjusted the same within 6 months from the end of the Financial Year. In actual circumstances Flat Buyer get subsidy certificate late or Subsidy in his bank account after expiry of period under which builder can adjust credit note/s. So Builder is finding it difficult to adjust GST liability if subsidy received after the six month from the end of the FY. There is no clarity in the law about all these situation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST 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 provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the `CGST Act'. 9. We find that questions that can be sought in an application for advance ruling under the provisions of Section 97(2) of the CGST Act, 2017 are as under- The question on which the advance ruling is sought under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both,. (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nked Subsidy Scheme (CLSS) provided value of land is included in the price of the house. The customers initially book flats from their own fund and later on apply for loan. So initially regular rate of GST @ 12% is charged and once the customer becomes eligible for CLSS benefit, concessional rate of GST is charged which is 8%. 13. As per clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018, where the builder has collected higher GST from the buyer in earlier months, the excess can be adjusted by the builder against his future GST liability by issue of credit notes as the definition of taxable supply given in GSTR-3B excludes value of credit notes. 14. The applicant appears to have been facing difficulty as there is time limit for issuance of credit notes as per Section 34(2) of the CGST Act, 2017 and there are cases where buyer becomes eligible for CLSS after due time limit for issuance of credit notes. Moreover, due to obtaining completion certificate for certain towers, the output GST liability is reduced and is not sufficient enough to adjust this reduced tax liability through such credit notes. 15. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under "Excess payment of tax, if any" through FORM GST RFD-01. 2. An advance is received by a supplier for a Service contract which got cancelled subsequently. The supplier has issued receipt voucher and paid the GST on such advance received. Whether he can claim refund of tax paid on advance or he is required to adjust his tax liability in his returns? In case GST is paid by the supplier on advances received for an event which got cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the CGST Act, he is required to issue a "refund voucher" in terms of section 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules. The taxpayer can apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category "Refund of excess payment of tax". Havin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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