Page 144 - GSTL_16th July 2020_Vol. 38_Part 3

382 GST LAW TIMES [ Vol. 38
to the applicant for houses constructed with a carpet area of not
more than 60 square metres per house in Project Part-B of Sector-4
and thus effective rate of GST applicable should be 12% (6% CGST +
6% SGST) and where further deduction of 1/3rd of total amount
charged towards value of land is allowable, effective total tax rate of
8% on total amount charged including cost of land will be applica-
ble for low cost housing as stated in above entry.
6. The applicant has put the following question for advance ruling in
their application :-
“Whether, under given facts and circumstances, is benefit of reduced
rate as provided under Entry Number 3(v)(da) of the Notification No.
11/2017-Central Tax (Rate) as amended by Notification No. 01/2018-
Central Tax (Rate) dated 25-1-2018, available to the applicant for houses
constructed with a carpet area of 60 square metres per house?”
Discussion & findings
7. We have considered the submissions made by the applicant in their
application for advance ruling as well as at the time of personal hearing. During
the personal hearing held on 19-3-2020, Shri Punit Prajapati and Shri Vishal Sa-
yani appeared on behalf of the applicant. During the course of hearing, they stat-
ed that there are three phases in the project out of which the applicant has ap-
plied for ruling in respect of Part-B of Sector-4 for which they have received a
different RERA registration RAA01040/181217; that however, the land on which
construction is being done in respect of Sector-4, which includes Part-A and Part-
B has common land, common facilities and common entrance; that they have
received common permission for entire land housing Part-A and Part-B but for
Stage ‘C’ and ‘D’ exclusively. Part ‘A’ consists of 9 buildings and Part ‘B’ consists
of 3 buildings; that Part ‘A’ and Part ‘B’ do not qualify under ‘affordable housing
‘; that the basic question raised by the applicant settles down to question whether
project should be read as Part ‘B’ standalone or should it be defined in terms of
entire Sector-4 having common land; they requested that Part ‘B’ should be taken
as individual project since it is separate project under RERA and definition of
Carpet area under the Act depends upon RERA Act; that the undivided share of
land in the project is being determined in terms of Sector-4 and not merely on
Stage ‘C’ and ‘D’ i.e. Part-B of the project.
8. The issue involved in this case pertains to applicability of benefit of
Entry No. 3(v)(da) of the Notification No. 11/2017-Central Tax (Rate) dated 28-6-
2017, as amended by Notification No. 1/2018-Central Tax (Rate) dated 25-1-2018
in respect of low-cost houses constructed by the applicant with a carpet area of
60 square metres per house in an 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, dated 30-3-
2017.
9. Relevant portion of the Notification No. 11/2017-Central Tax (Rate)
dated 28-6-2017 (as amended) reads as under :
“3.v.(da) low-cost houses up to a carpet area of 60 square metres per
house in an affordable housing project which has been given infrastructure
status vide notification of Government of India, in Ministry of Finance,
Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the
30th March, 2017;”;
GST LAW TIMES  16th July 2020  144