Page 149 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : ANJU KUSHAL JAIN 659
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, the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. Facts and contention - As per the applicant :
The submissions made by the Applicant is as under :-
2.1 ‘Anju Kushal Jain’, the Applicant is desirous of obtaining GST regis-
tration for providing Service categorized as Renting of Immovable Property. Ap-
plicant was interested in purchasing certain shops in Rajkamal Complex, within
the limit of Nagpur Municipal Corporation. The said shops were given on lease
to M/s. Shah Nanji Nagsi & Co. on 2nd March, 1974 for 5 years and was renewed
orally from time to time. Then M/s. Shah Nanji Nagsi & Co. put M/s. Vidharbha
Vehicles Pvt. Ltd. (hereinafter referred to as Tenant or Lessee) in October, 1984 in
occupation of the said premises. Presently the property is occupied by M/s. Vi-
dharbha Vehicles Pvt. Ltd. and they have been paying rent till date regularly.
Applicant is one of the Directors in M/s. Vidarbha Vehicles Pvt. Ltd. and now,
the applicant has purchased the said property in her individual name along with
two of her family members by entering into an Agreement to Sell on 5th Septem-
ber, 2019 with Mr. Satish Gopalrao Ghatate having Sr. No. 267/6176 (hereinafter
referred as ‘Vendor’ or ‘Landlord’ or ‘Lessor’) along with tenant liability of M/s.
Vidarbha Vehicles Pvt. Ltd. Even in Agreement to Sell it is mentioned the said
property is 44 yrs. old.
2.2 Apart from rent of said shops, tenant has also incurred and paid the
expenses of electricity since the inception of the rent agreement and the bill was
in name of tenant.
2.3 The building “Rajkamal Complex” as per Nagpur Municipal Cor-
poration records was sanctioned on 19th March, 1971 and Building Permit along
with Sanction Drawing has been attached with this application. Also, on 1-4-1986
the Municipal Tax Department of Nagpur Municipal Corporation incorporated
the name of Vidharbha Vehicles Pvt. Ltd. as registered tenant/Occupant of the
said Premise and since then the Tax has been paid by the Tenant through Land-
lord Shri Satish Ghatate, the records were asked from the Municipal Department
via RTI and has been enclosed with this application.
2.4 Applicant submits that, as per Clause 5(b) of Schedule II of CGST
Act read with Notification 11/2017-Central Tax (Rate), dated 28th June, 2017,
construction of a complex or building, intended for a sale to a buyer, wholly or
partly, shall not be treated as supply of service and no tax shall be charged if the
entire consideration is received after the issuance of completion certificate, by
competent authority, or after its first occupation, whichever is earlier. Given this,
the transaction entered in between the parties is not liable to GST.
2.5 In view of the above, the subject question has been raised by the
applicant.
2.6 The applicant has cited the definition of “Supply” as defined under
Section 7, Schedules II and III of the CGST Act and have submitted that a com-
bined reading of the entries in Schedule II and Schedule III may lead to a conclu-
sion that in following two scenarios, the sale of building will not be covered un-
der the definition of supply, and will be excluded from the purview of GST.
(a) where entire consideration is received after completion certificate.
(b) after first occupancy whichever is earlier.

GST LAW TIMES  26th March 2020  245