Page 114 - GSTL_16th July 2020_Vol. 38_Part 3

352 GST LAW TIMES [ Vol. 38
2020 (38) G.S.T.L. 352 (A.A.R. - GST - Guj.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri Mohit Agrawal and Sanjay Saxena, Members
IN RE : DIPESH ANILKUMAR NAIK

Advance Ruling No. GUJ/GAAR/R/2020/11, dated 19-5-2020
in Application No. Advance Ruling/SGST & CGST/2018/AR/49
Construction service - Plotted development - Taxability to GST - Ap-
plicant, the owner of land, develops the land with an infrastructure such as
Drainage line, Water line, Electricity line, Land leveling, etc. as per the re-
quirement of the approved Plan Passing Authority (i.e., Jilla Panchayat) and
thereafter sells such developed land as plots - Sale price includes the cost of
land as well as the cost of common amenities, Drainage line, Water line, Elec-
tricity line, Land levelling charges, etc. on a proportionate basis - Sale of de-
veloped plot not equivalent to sale of land but is a different transaction - Sale
of such plotted development tantamount to rendering of service and covered
under the clause ‘construction of a complex intended for sale to a buyer’ - Ac-
cordingly, the said activity is covered under ‘Construction services’ and GST is
payable on the sale of developed plots - Clause 5(b) of Schedule-II of Central
Goods and Services Tax Act, 2017. [paras 12, 13, 14]
Ruling in favour of department
CASE CITED
Narne Construction Pvt. Ltd. v. Union of India — 2013 (29) S.T.R. 3 (S.C.) — Relied on .......... [Para 11.2]
REPRESENTED BY : Shri Avinash Poddar, Advocate, for the Assessee.
[Order]. - Brief Facts : The applicant has submitted that he is having a
vacant land outside the municipal area of town on which he has some proposed
business activity. The applicant is having all the necessary approvals for the pro-
posed project from the Plan Passing Authority (i.e. Jilla Panchayat).
2. The applicant has further submitted that as per the Plan Passing Au-
thority, the seller of land is required to develop the primary amenities like Sew-
erage and drainage line, Water line, Electricity line, Land levelling for road, Pipe
line facilities for drinking water, Street lights, Telephone line etc.
3. The applicant further submitted that they will sell the individual
plots to different buyers without any construction on the same but by providing
the primary amenities as mentioned above, which are mandatory requirement of
the approved Plan Passing Authority (i.e. Jilla Panchayat).
4. In view of the above, the applicant has sought for an advance ruling
in respect of the following question :
Whether GST is applicable on sale of plot of land for which, as per the
requirement of approved by the respective authority (i.e. Jilla Pancha-
yat), Primary amenities such as, Drainage line, Water line, Electricity
line, Land levelling etc. are to be provided by the applicant?
5. At the time of personal hearing, the Authorised Representative of the
applicant reiterated the facts as stated in the Application and as mentioned here-
inabove.
GST LAW TIMES  16th July 2020  114