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TMI BlogGST ON OFFICEX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Expert Our Client Entered in to the Agreement in the Month of March-2024 which was duly Registered and O C Received in the Month of Sept-2024. Builder has now raised GST Demand.... is it Correct ? Please Guide - Reply By Sadanand Bulbule - The Reply = Dear Nilesh Was the agreement in March 2024 entered for purchase of office, when there was no OC? The date of sale agreement is crucial here as regards to the applicability of GST. Be specific on facts. - Reply By Shilpi Jain - The Reply = At the time of paying the first advance by ur client if completion certificate is not received then GST liability will exist - Reply By KASTURI SETHI - The Reply = Sh. Nilesh Pitale Ji, (i) As per Schedule-II, Clause-5 (b), GST on construction service i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s NOT payable only if the entire consideration has been received after issuance of completion certificate or after its first occupation (whichever is earlier). The emphasis is laid on the words, 'only ' 'entire' and 'after'. (ii) Even if the smallest amount is received prior to the issue of completion certificate or first occupation, GST will be applicable and then no exemption will be admissible at all. (iii) Whether any amount was paid to the builder prior to the issuance of O.C. ? (iv) Pl. elaborate your query with full facts. Without full facts correct reply is not possible. - Reply By Mathi Bharathi - The Reply = Dear Sir / Madam Our customer will purchase our product by presenting Invalidation letter of EPCG . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To produce our product we need to import some components and we are planning to take AA for duty exemption . Hope clear now and advice - Reply By KALLESHAMURTHY MURTHY - The Reply = Dear Sirs, This is the continuity of the contents in Sl. No. 3. Where an agreement is entered into by a prospective buyer on advance payment or deferred payments for a property under construction, GST is applicable even on instalments paid after OC is received, as per the Judgement of Hon ble Supreme Court of India i n the case of Larsen Tourbo Ltd. vs. State of Karnataka in relation to the law laid down in K. Raheja s case. - Reply By KASTURI SETHI - The Reply = Sh.Kalleshamurthy Murthy Ji, Sir, The judgement of Hon'ble Supreme Court mentioned by you was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to Larger Bench reported as 2008 (12) STR.257 (SC). - 2008 (8) TMI 28 - SUPREME COURT Still not final as per EXCUS. The appeal of K.Raheja Development Corporation - 2005 (5) TMI 7 - SUPREME COURT was dismissed by Hon'ble Supreme Court. - Reply By KALLESHAMURTHY MURTHY - The Reply = Sri Kasturi Sethi Ji, sir, With respect, I would like to furnish the following to the contents in Sl. No. (6) above. The Judgement of Hon ble Supreme Court of India in the case of M/s L T v/s State of Karnataka - 2013 (9) TMI 853 - SUPREME COURT vide Case No. Civil Appeal No. 8672 of 2013, in conformity with the case of M/s Raheja Development Corporation v/s State of Karnataka -2005 (5) TMI 7 - SUPREME COURT 2013 dated September 26, 2013. The very gist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case in precise is as under. The activity of construction undertaken by the Developer would be a works contract only from the stage the Developer enters into a contract with the Flat purchaser . There were cases assessed under the KVAT Act based on this Judgement. Sir, please give your analysis on the same. Thanking you Sir, - Reply By Sadanand Bulbule - The Reply = Dear Murthy While taking the liberty of Sethi sir, I am of the opinion that the law governing 'works contract' is well settled by the Hon'ble Apex Court in L T - 2013 (9) TMI 853 - SUPREME COURT case in 2013 [supra]. Purchase Contract between the builder and the prospective buyer is umbilical cord to decide the taxable event. In the absence of any contract ,t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he works of construction is only on account of own construction by the builder. So he is not eligible to claim ITC and also not liable to pay OPT as there is no element of supply of works contract services. This ratio applies to the current GST regime as well. Sethi Sir to sum up. - Reply By KASTURI SETHI - The Reply = Sh. Sadanand Bulbule Ji, Sir, I have gone through all the judgements posted. The whole issue is required to be revisited. It is my humble request. Pl. peruse the following judgement of Supreme Court and let us interact afresh. The judgment of Hon'ble Supreme Court reported as L T-2013 (9) TMI 853-SC stands overruled on 06.5.2014 reported as under :- Overruled in (Supreme Court) in the case of KONE ELEVATOR INDIA PVT. LTD. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Versus STATE OF TAMIL NADU - 2014 (5) TMI 265 - SUPREME COURT . Pl. throw more light on the issue to quench my thirst for more knowledge.. Looking forward for your outlook please. - Reply By Sadanand Bulbule - The Reply = Dear Sir The Hon'ble Supreme Court in its judgement dated 06/05/2014 rendered in the case of Kone Elevator India Pvt Ltd Vs. State of Tamil Nadu Others [2014 (5) TMI 519-SC] has overruled its own earlier judgement dated 17/02/2005 rendered in Kone Elevators Vs. State of AP [2005 (2) TMI 519-SC] highlighting the distinguishing spinal facts determining the sale of goods and 'works contract'. To be continued...... - Reply By Sadanand Bulbule - The Reply = Plz read it as 2014 (5) TMI 265-SC - Reply By KALLESHAMURT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HY MURTHY - The Reply = Dear Sirs, I am submitting my views and understandings before the Experts for more clarity on the issue raised. Clause (29A) was incorporated into Article 366 in the 46 th Amendment to the Constitution . The Hon ble SC upheld this Amendment in the case of Builders Association v/s Union and others. On this plethora, the Constitutional Bench (SC), over-ruled in the case of Kone Elevator India Pvt. Ltd. vs State of Tamil Nadu and Ors. - 2014 (5) TMI 265 - SUPREME COURT its own judgement of the earlier decision of the three-member Bench re State of A.P. v. Kone Elevators (India) Ltd. - 2005 (2) TMI 519 - SUPREME COURT and held that the activity of manufacturing, erecting, installing and commissioning of a lift (an elevat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or) is indeed a works contract and not a contract for sale of goods in the similar way of L T decision which is a Landmark Judgement standing still. With respects to all - Reply By KASTURI SETHI - The Reply = Sh.Sadanand Bulbule Ji, I shall not give up. This is as per your latest post in Issue ID 119370 . - Reply By KASTURI SETHI - The Reply = Sh. Kalleshamurthy Murthy Ji, Sir , I am well aware of all the judgements and status thereof. It is an undisputed fact that both 'Works Contract' and 'Works Contract Service' are different terms. It is also not in dispute that 'Works Contract Service' is a composite supply of service. How the above judgements are relevant in GST regime, especially, in view of Para nos. 5 6 of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule-II ? - Reply By KASTURI SETHI - The Reply = Dear Sir, The ratio of the following judgement is also worth reading ::- Service Tax and VAT are mutually exclusive---Supreme Court in the case of Image Creative Pvt. Ltd - 2008 (1) TMI 2 - SUPREME COURT . Emphasis is laid on ratio. - Reply By Sadanand Bulbule - The Reply = Dear Sir Your post at Sl.No 15 is indisputable. One cannot make an omelet without breaking eggs . Let other experts double check the factual position and introspect the truth of the matter at ha nd. There is no point in pounding the dry husk. - Reply By Sadanand Bulbule - The Reply = Dear all Such discussion, this reminds me an old saying: In search of frills, lose skirt . - Reply By KALLESHAMURTHY MURTHY - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Kasturi Serthi Ji, Sir, I know that you are more well aware of the orders and judgements. I have posted my submissions at Sl. No.12 for more clarity with regard to your postings at Sl. No. 6 9. With respects. - Reply By KASTURI SETHI - The Reply = Sh.Kalleshamurthy Murthy Ji, Sir, All the above judgements of Hon'ble Supreme Court deal with the term, 'Works Contract' under VAT Act and NOT 'Works Contract Services' under Service Tax Law ( Finance Act, 1994 ). How the case laws pertaining to VAT Act can be relevant for Service Tax Laws or GST regime ? What is the purpose behind 'Exclusion clause' mentioned in Schedule-II (Para No.5 (b)) ? ----------------- except where the entire consideration has been received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after issuance of completion certificate or after its first occupation, whichever is earlier. . This exclusion clause also existed in Section 66D (b) of the Finance Act, 1994 (Service Tax Laws). - Reply By KASTURI SETHI - The Reply = Dear Sir, The following case law is also worth reading:- Works Contract Services were held to be outside the legislative competence of the State legislatures . ----CESTAT Delhi in the case of Raj Construction Company Vs. Commissioner of CGS - 2024 (11) TMI 11 - CESTAT NEW DELHI . - Reply By KASTURI SETHI - The Reply = Sh. Sadanand Bulbule Ji, Sir, Thank you very much for your posts at serial nos. 16 17. Both contain very deep and meaningful messages. Both are thought provoking and motivate the readers to work h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to achieve something in life in a disciplined manner. - Reply By Sadanand Bulbule - The Reply = Dear Sir So kind of you for your soulful expressions. The fully matured minds can dive into any depth of ocean of good thoughts. In the darkness of everyday life,we need nothing but only light. Good thoughts always radiate illuminating light. Only we should be prepared to open our eyes, both internal and external. Let us make use of this forum to inculcate the values of life besides value addition to our professional life. Profession is for life and life is not for profession, be it any. - Reply By KALLESHAMURTHY MURTHY - The Reply = Dear Sirs, Every word at Sl. No. 22 is astounding, one should adopt to learning life with every footstep. - Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Sadanand Bulbule - The Reply = Dear Murthy Thanks for your deep acknowledgment. - Reply By KASTURI SETHI - The Reply = Sh. Kalleshamurthy Murthy Ji, Sir, Pl. go through all the replies of Sh. Sadanand Bulbule, Sir from all perspectives of life and not related to GST only. You will find gems in his language. Frankly speaking, I 'steal' his words, phrases, idioms, proverbs used by him i n the fitness of things and use the same in interaction with my nears and dears. - Reply By KALLESHAMURTHY MURTHY - The Reply = Sri Kasturi Sethi Ji, Your grace Sir. - Reply By KASTURI SETHI - The Reply = Sh.Kalleshamurthy Murthy Ji, Sir, Truth must be accepted and appreciated in a public forum wholeheartedly. - GST ON OFFICE - Query Started B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y: - NILESH PITALE Dated:- 17-10-2024 Last Replied Date:- 6-11-2024 Goods and Services Tax - GST - Got 27 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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