Page 141 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : AMBA TOWNSHIP PVT. LTD. 379
that work should be for construction of low-cost houses up to a carpet area of
60 square metres per house in affordable housing project which has been giv-
en infrastructure status vide Notification of Government of India, in Ministry
of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF - Term
“housing project” not defined in Central Goods and Services Tax Act, 2017 or
Notification of Department of Economic Affairs - To be construed in generic
sense as project having common facilities, common entrance, common area,
common land, etc. - Benefit of said notification available subject to condition
that applicant builds housing project using 50% or more of FAR/FSI for dwell-
ing units with carpet area up to 60 square metres - Part A and Part B of town-
ship having common areas, common entrance, common facilities and common
land with buyers in both parts having equitable ownership over these areas -
Part B not to be considered as independent project - 74.08% of FSI of Part-B of
township used for constructing units with a carpet area of up to 60 sq metres -
However, since Part-B not an independent/standalone housing project, total
FSI of Part-B could not be considered as denominator to arrive at 50% as re-
quired under Notification of Department of Economic Affairs to determine
applicability of benefit of Sr. No. 3(v)(da) of said Notification - Applicant’s
housing project cannot be considered as an ‘affordable housing project’ - Ap-
plicant not fulfilling conditions as envisaged in Entry No. 3(v)(da) of Notifica-
tion No. 11/2017-C.T. (Rate) as amended by Notification No. 1/2018-C.T (Rate) -
Not eligible for benefit of reduced rate thereunder. [paras 10, 10.1, 10.2, 10.3, 12]
Ruling in favour of department
REPRESENTED BY : Shri Punit Prajapati, CA, for the Assessee.
[Order]. - Brief Facts : The applicant vide their application for Advance
Ruling has submitted that they are engaged in the construction of residential and
commercial construction on works contract basis; that at present they are en-
gaged in the construction and development of a township namely “AMBA
TOWNSHIP” located at Adalaj, Gandhinagar, Gujarat; that they are developing a
township which consists of many real estate projects within a township; that
since the development of the town is a continuous process, the applicant is de-
veloping the township in a phased manner; that different schemes or projects are
being undertaken by the applicant at different span of time; that at present, Sec-
tor-4 of the township is being constructed which is also divided into two parts
namely Part-A and Part-B.
Part-A is further divided into two phases i.e. Phase-1 and Phase-2.
The projects under Phase-1 are (i) Sarvaswa-1 (ii) Sanatan-1 (iii) Sanatan-
2 (iv) Stuti-1 (v) Stuti-2 (vi) Swaroop-1 (vii) Swaroop-2 (viii) Swaroop-3
and (ix) Swaroop-4.
The projects under Phase-2 are : (i) Sanatan-3 (ii) Swaroop-5 and (iii)
Swaroop-7
The projects under Part-B are: (i) Sarvasva-2 (ii) Stuti-3 and (iii) Swaroop-
6 which are mainly for small and affordable houses; that it can be seen
that 74.08% of the total Floor Space Index (FSI) is used for small houses
having carpet area upto 60 sq. metres which can be understood better by
seeing the table below :

GST LAW TIMES  16th July 2020  141