Page 149 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : AMBA TOWNSHIP PVT. LTD. 387
Sector-4 (of Amba township) comprising of Part-A and Part-B has
not been used for construction of dwelling units with carpet area of
not more than 60 sq.meters, the benefit of Entry No. 3(v)(da) of No-
tification No. 11/2017-Central Tax (Rate), dated 28-6-2017 is not ap-
plicable to the applicant.
(e) The applicant has concluded by stating that in view of the above
facts, it appears 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 Notification No. 1/2018-Central
Tax (Rate) dated 25-1-2018, is available 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 applicable for low cost housing as
stated in above entry. In this regard, we would once again reiterate
that since Part-B of Sector-4 of township cannot be considered as a
standalone housing project since it shares common land, common
facilities and common entrance with Part-A of Sector-4 of the town-
ship and since 50% of FAR/FSI of the entire housing project of Sec-
tor-4 (of Amba townshippvt.ltd.) comprising of Part-A and Part-B
has not been used for construction of dwelling units with carpet ar-
ea of not more than 60 sq.meters (as per the requirement in Notifica-
tion No. 13/6/2009, dated 30-3-2017 of the Government of India,
Ministry of Finance, Department of Economic Affairs), the said
housing project cannot be considered as an ‘affordable housing pro-
ject’. The applicant, therefore, does not fulfil the conditions as envis-
aged in Entry No. 3(v)(da) of 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), hence the benefit of the said no-
tification is not applicable to them.
10.3. In view of the above discussions, it can be concluded that the ap-
plicant has not fulfilled the condition mentioned at Para-10 above and therefore
the benefit of Entry No. 3(v)(da) of Notification No. 11/2017-Central Tax (Rate),
dated 28-6-2017 (as amended by Notification No. 1/2018-Central Tax (Rate), dat-
ed 25-1-2018) is not applicable to them.
11. In view of the foregoing, we rule as under -
RULING
12. The applicant M/s. Amba township pvt.ltd. is not eligible for the
benefit of reduced rate as provided under Entry Number 3(v)(da) of the Notifica-
tion No. 11/2017-Central Tax (Rate) as amended by Notification No. 1/2018-
Central Tax (Rate), dated 25-1-2018, available for houses constructed with a car-
pet area of 60 square metres per house” for the reasons mentioned hereinabove.

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GST LAW TIMES  16th July 2020  149