Page 141 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : VILAS CHANDANMAL GANDHI 651
2020 (34) G.S.T.L. 651 (A.A.R. - GST - Mah.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
MAHARASHTRA
Smt. P. Vinitha Sekhar, Member (Central Tax) and Shri A.A. Chahure,
Member (State Tax)
IN RE : VILAS CHANDANMAL GANDHI
Order No. GST-ARA-40/2019-20/B-06-Mumbai, dated 15-1-2020
in Application No. 40
Transferable Development Rights (‘TDR’)/Floor Space Index (‘FSI’) -
Surrender of Joint right on consideration - Classification - Rate of GST - Issue
already stands clarified at S. No. 7 of FAQ issued by C.B.I. & C. Instruction
F. No. 354/32/2019-TRU, dated 14-5-2019 on real estate holding that transfer of
development rights or FSI (including additional FSI) is leviable to GST - In
view of aforesaid FAQ read with Notification No. 4/2018-C.T. (Rate) and Noti-
fication No 5/2019-C.T. (Rate), held that aforesaid activity classifiable under
Heading 9972 is leviable to GST @ 18% (9% CGST + 9% SGST) - Section 9 of
Central Goods and Services Tax Act, 2017/Maharashtra Goods and Services
Tax Act, 2017. [paras 5.1, 5.2, 5.3]
Ruling in favour of department
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C Instruction F. No. 354/32/2019-TRU, dated 14-5-2019 ................................................. [Para 5.2]
[Order]. - Proceedings : The present application has been filed under Sec-
tion 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra
Goods and Services Tax Act, 2017 (hereinafter referred to as “the CGST Act and
MGST Act”) by Vilas Chandanmal Gandhi, the applicant, seeking an advance
ruling in respect of the following questions.
(a) Whether GST is leviable on sale of Transferable Development
Rights (‘TDR’)/Floor Space Index (‘FSI’) received as consideration
for surrendering the joint rights in land in terms of Development
Control Regulations and granted in light of the article of agreement
dated 18 December, 2017 entered between the Applicant and Pune
Municipal Corporation (‘PMC’) read with Development Control
Regulations?
(b) If yes, what will be classification under GST and what will be appli-
cable rate of GST?
At the outset, we would like to make it clear that the provisions of both the CGST
Act and the MGST Act are the same except for certain provisions. Therefore, un-
less a mention is specifically made to any dissimilar provisions, a reference to the
CGST Act would also mean a reference to the same provision under the MGST
Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a
reference to “GST Act” would means CGST Act and MGST Act.
2. Facts and contention - As per the applicant :
The submissions made by the applicant is as under :-
2.1 The Applicant, Mr. Vilas Chandanmal Gandhi, was an owner of the
land situated within the limits of PMC and wanted to develop the land jointly in
collaboration with M/s. Amar Builders and Developers (Developer) and share
GST LAW TIMES  26th March 2020  237