Page 147 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : AMBA TOWNSHIP PVT. LTD. 385
housing project if and only if it fulfils the basic conditions men-
tioned above. The representatives of the applicant have themselves
mentioned during the course of personal hearing that Part-B is a
part of the Sector-4 of the township and shares a common entrance,
common facilities and common land with Part-A, which is also a
part of Sector-4 of the township. Under the circumstances, it would
not be possible to consider Part-B of Sector-4 (of Amba township) as
a standalone independent housing project. The applicant during the
personal hearing also submitted 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. Therefore, it is very
clear that the applicant has himself regarded the entire Sector-4 as a
holistic, comprehensive, single housing project and the units in the
building being sold as part of this housing project. The applicant
himself has been selling the entire project as one and giving undi-
vided share to all buyers irrespective of whether unit is sold in Part-
A or Part-B of the project. Therefore, the buyer of unit in Part-A of
the project is equitable owner of common areas, common entrance,
common facilities and common land as is the buyer of unit in Part-
B. Therefore, the submissions of the applicants are self-
contradictory in itself since on one hand the applicant has been ob-
taining various permissions from authorities for entire project com-
prehensively and even selling the units as part of one project with
common facilities and undivided share of land in entire project yet
on the other hand claiming a part of the housing project as separa-
ble project in order to obtain the exemption. It is seen from the
submission made by the applicant that 74.08% of the FSI of Part-B of
the township of Sector-4 has been used for constructing units with a
carpet area of upto 60 sq meters. However, since Part-B is not an in-
dependent/standalone housing project as discussed above, total FSI
of Part-B cannot be considered as denominator to arrive at 50% as
required under notification dated 30-3-2017 of the Department of
Economic Affairs, Ministry of Finance to determine the applicability
of the benefit of Sr. No. 3(v)(da) of Notification No. 11/2017-Central
Tax (Rate), dated 28-6-2017.
(c) The applicant has further submitted that the term ‘housing project’
is not defined under the Notification 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 also borrowed in the said notification from RERA
Act, 2016 which also implies that the term ‘project’ may also be bor-
rowed from RERA Act; that in terms of Section 3 of the RERA Act,
2016, every real estate 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 reg-
istered separately; 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
GST LAW TIMES  16th July 2020  147