Page 188 - GSTL_30th April 2020_Vol 35_Part 5

658 GST LAW TIMES [ Vol. 35
Construction services - Development of property - Transaction in
immovable property - Development of property by construction of
commercial and residential units and integrated facilities with exclusive
rights to design, finance and develop property - Such property
leased/assigned/transferred to prospective customers on lease basis on
payment of lease consideration - Transaction though termed as lease
transaction in agreement between parties cannot be termed as such but it
was agreement for construction of residential flats - Usually
flat/apartment given on lease as complete unit and immediately handed
over to lessee for use - However, agreements entered into during
construction of project and slab-wise lease payments made before
completion of project, which almost never happens in the lease of flat or
unit - Difficult to believe that lessee will commit such amount before
moving or enjoying flat - Clear that sale transaction projected as a lease
transaction - Clause in agreement that all prospective lessee of flats shall
be entitled to join association or Cooperative Society proving that
assessee built a complex or residential unit and made a outright supply
and not on lease - Lessee also liable to pay registration charges and stamp
duty - Project RERA registered and transaction not lease - Order of
Advance Authority that supply classifiable under Heading 9954 of
Customs Tariff Act, 1975 and attracted GST @ 18%, affirmed - Section
2(119) of Central Goods and Services Tax Act, 2017 — In Re : Nagpur
Integrated Township Pvt. Ltd. (App. A.A.R. - GST - Mah.) .................. 354
— Works contract - Supply of services - Applicant under agreement with the
land owner only for development of land which includes construction of
concrete roads and compound walls, development of garden,
construction of drain and water supply system and erection of electric
poles and transformer, etc. - Applicant can enter into sale agreements as
per agreement but such activity only incidental to the main activity of
development of land - Land owner still remains the land owner till
property transferred in the name of purchaser and activities done by
applicant on behalf of the land owner - Consequently, applicant cannot
claim to be engaged in the activity of sale of land as envisaged in the
provisions of entry at Serial No. 5 of Schedule-III to Central Goods and
Services Tax Act, 2017 - Activities performed/to be performed by the
applicant amounts to supply of services under works contract and liable
to be taxed - Sections 2(30) and 2(117) of Central Goods and Services Tax
Act, 2017 — In Re : Vidit Builders (A.A.R. - GST - M.P.) ................. 235
Continuous supply of goods, time of supply thereof - See under TIME OF
SUPPLY ....................................... 428
Contract of skill and labour in providing photographic services, VAT not
levaible - See under PHOTOGRAPHIC SERVICES ................ 75
Contribution by Club members towards Administration Account not liable
to GST - See under CLUB MEMBERSHIP FEE .................. 322
— to District Mineral Foundation (DMF), National Mineral Exploration
Trust (NMET) and Goa Mineral Ore Permanent Fund Trust (GMOPFT)
on mining lease, classification and rate of GST - See under MINING
LEASE ........................................ 590

GST LAW TIMES  30th April 2020  188