Page 143 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : AMBA TOWNSHIP PVT. LTD. 381
(1) Benefit of reduced rate of tax is provided under sub-clause (da) to
clause (v) of Entry No. 3 of Notification No. 11/2017-Central
Tax(Rate) based on the condition that an affordable housing project
has been given an infrastructure status as provided under the Noti-
fication of the Government of India, in Ministry of Finance, De-
partment of Economic Affairs vide F. No. 13/6/2009-INF, dated 30-
3-2017 and as per the said notification, a housing project using 50%
or more of the FAR/FSI for dwelling units with carpet area upto 60
square metres has been given infrastructure status.
(2) As the applicant is developing a township, which is a continuous
process and not limited to one or two phases of development, entire
area of a township cannot be considered for arriving at 50% or more
FSI as required under the Notification dated 30-3-2017; that a project
is complete project in itself which is independent of other projects
(within township) which are either completed before, during or af-
ter completion of Part B of Sector 4; that as township is a continuous
development process, it is not having any fixed total area under de-
velopment and hence it could not have a fixed FSI as required un-
der the notification dated 30-3-2017; that a township is different
from a standalone housing project which is undertaken for a partic-
ular class of people and shall comprise of houses for all sections of
the society; that a township is an integration of various projects for
different types of people of society i.e. higher, middle and weaker
class of people; thus, Part-B is independent project for affordable
housing and total FSI of Part-B should be considered as denomina-
tor to arrive at 50% as required under notification dated 30-3-2017.
(3) The term ‘housing project’ is not defined under the Notification
dated 30-3-2017 based on which reduced rate of 8% is applicable;
that for real estate projects, terms defined under the RERA Act, 2016
can be useful for interpretation; that definition of Carpet Area is al-
so borrowed in the said notification from RERA Act, 2016 which al-
so implies that the term ‘project’ may also be borrowed from RERA
Act; that in terms of Section 3 of the RERA Act, 2016, every real es-
tate project is required to be registered under the said Act, every
phase shall be considered as a standalone real estate project and
shall be separately registered; thus, even for RERA Act, 2016, Part-B
is a standalone housing project and required to be registered sepa-
rately; that as notification dated 30-3-2017 is dependent on carpet
area as defined under the RERA Act, 2016 it should be considered
as denominator to arrive at 50% as required under the notification
dated 30-3-2017.
(4) As total FSI for the project is 35046.74 square metre and out of that
25961.33 square metres of FSI is used for units having carpet area of
not more than 60 square metres, 74.08% of FSI of total Part B of Sec-
tor 4 is used for affordable housing and hence Entry No. 3(v)(da) is
applicable to the appellant.
(5) In view of the above facts, it appears to the applicant that the benefit
of reduced rate of GST as provided under entry Number-3(v)(da) of
the Notification No. 11/2017-Central Tax (Rate) as amended by No-
tification No. 1/2018-Central Tax (Rate) dated 25-1-2018, is available
GST LAW TIMES  16th July 2020  143