2018 (12) TMI 535 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 181 (A. A. R. – GST) – Levy of GST – landowner – The builder offered to develop and promote a multistoried residential apartment cum commercial building in the property – premises allotted to him, which he intends to distribute among his family members – Held that:- The applicant, being the person Who has supplied development rights to a developer in respect of his land, is liable to registration and payment of tax – Section 22 of the CGST Act 2017 tells about the persons liable for registration and stipulates that Every supplier, who makes a taxable supply of goods or services or both, shall be liable to be registered, if his aggregate turnover crosses the threshold limit prescribed in the Act.
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The applicant has not furnished any information with regard to transfer of possession of the constructed flats / commercial area or allotment order of the same, in the instant application and hence the a
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018, for advance ruling under section 97 of CGST Act,2017, KGST Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01, discharging the fee of ₹ 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant a land owner, entered into an agreement with M/s. Nforce Infrastructure India Pvt. Ltd., Builders & Developers, Victoria , Door No.25-14-840/1, Near Valencia Church, Kankanady post, Mangaluru – 572 002, for joint development and promotion of the N Force -Pauline , the residential / commercial building at Valencia, Mangalore. The builder offered to develop and promote a multistoried residential apartment cum commercial building in the property belonging to the Applicant as well as the other land owners. Therefore the applicant filed this instant application Seeking ruling on the following issue : Whether the applicant being the land owner is liable to pay GST on premises allotted to him, which he intends to distr
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t Agreement. 6. The Applicant, filed this application dated 23.02.2018 for advance ruling, seeking clarification as to Whether the applicant being the land owner is liable to pay GST on premises allotted him, which he intends to distribute among his family members ? . 7. Chapter of the CGST Act 2017 deals with the provision of Advance Ruling and Section 94(a) of the CGST Act 2017 defines Advance Ruling as a decision provided by the Advance Ruling Authority, to an applicant on matters or questions specified in Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 8. The applicant registered himself with GSTN for the purpose of filing application before the Authority for Advance Ruling. We find that the applicant is liable to be registered, as discussed in the succeeding paragraphs. the application was admitted. 9. The applicant entered into an agreement with M/s. Nforce Infrastructure In
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n the form of transfer of development rights, as the registered persons in whose case the liability to pay central tax on supply of the Said services, on the consideration received in the form of construction service referred to in clause (a) above and in the form of development rights referred to in clause (b) above, shall arise at the time when the said developer, builder, construction company or any other registered person, as the Case may be, transfers possession or the right in the constructed complex, building or civil structure, to the person supplying the development rights by entering into a conveyance deed or similar instrument (for example allotment letter) 11. This notification notifies person or persons Who supply development rights to a developer / builder etc., against a consideration, which may be in the form of construction service, is liable to be registered under CGST/KGST Act 2017. It also provides that the person who supplies the development rights shall pay centra
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t Every supplier, who makes a taxable supply of goods or services or both, shall be liable to be registered, if his aggregate turnover crosses the threshold limit prescribed in the Act. The applicant has not furnished any information with regard to transfer of possession of the constructed flats / commercial area or allotment order of the same, in the instant application and hence the authority presumes that the possession of the constructed flats / commercial area has not been handed over to the Applicant, as on date. 13. The Developer M/s. Nforce Infrastructure India Private Limited, with whom the applicant entered into an agreement for development of his land, has also filed an application seeking advance ruling on certain questions based on the same Joint Development Agreement. Therefore the ruling in the developer s case may also be interest to this applicant. 14. Therefore, we are of the considered opinion that the Applicant is supplier of a taxable service by way of transfer of
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