In Re: M/s. The Kreations Builders & Developers
GST
2019 (3) TMI 148 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (22) G. S. T. L. 513 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 23-1-2019
GST-ARA-85/2018-19/B-16
GST
SHRI B. TIMOTHY, AND SHRI B. V. BORHADE, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST “Act and “MGST Act” respectively] by M/s. THE KREATIONS BUILDERS & DEVLOPERS, seeking an advance ruling raising the following question:
1) Whether, as per notification no. 01/2018 – Central Tax (Rate) dated 25th January, 2018 can works?
2) Facts in brief –
Mr. Madan Khadgi, proprietor of M/s. The Kreations Builders and Developers is in the busi
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into agreement with M/s. Loomcraft Shade Systems Private Limited for providing works contract services. The entire project is a residential project with each residential unit having an area of with less than 60 sq. meters. The said project gets infrastructure status vide Notification of Government of India, Ministry of Finance. department of Economics Affairs vide F. No. 13/06/2009.INF, dated the 304 March, 2017 .The Loomcraft Shade Systems Private Limited wish to raise the invoice on THE KREATIONS, at GST 18% considering that since residential project is not registered with any central or state authority, concessional rate of 12% cannot be charged
Statement of Fact for Question no. (2):-
As per press Release by Ministry of Finance dated Feb 7, 2018, 7 Para which is reproduced below give understanding that concessional rate of 12% {effective GST rate of 8% after deducting value of land) to service by way of construction of low cost houses up to carpet area of 60sqm in to a housing
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composite supply of works contract as per sub section 119 of Section 2 of CGST Act. So as per notification no. 01/2018 Central Tax (Rate) SL No. 3{v}(da) a concessional rate of GST of 6% can be charged to a project even if the project is not registered with any central or state authorities and fall within the ambit Of notification F No. 13/6/2009 INF, dated the 30 March, 2017.
Interpretation for question (2) As per Consolidated Notification No. 11/2017 Central Tax (Rate) which is amended vide notification No 1/2018-Central Tax (Rate) Construction service having service Accounting Code (SAC) 9954 is divided into 2 broad categories i.e. Construction Services and Composite supply of works contract as per section 2(119) Of CGST Act. Strictly speaking the service provided by M/s. THE KREATIONS to prospective home buyers fall in the category of Construction series of complex, building etc. for which the rate as per notification is 9%. However, the intention of the government can be read fr
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d, this office has contacted the applicant on 14.01.2019 in the issue of reframing of their questions, but response has been received by them till 16.1.2019. Hence we are constrained to decide present application on the basis of available records.
7. OBSERVATION –
It is mandatory as section 97(1) read with Rule 104 of the CGST/MGST Act to pay applicable fee of Rs. 5000/- each under SGST and CGST Act to be deposited as per the provision of Section 49 of the Act. If not the application would be treated as an incomplete application liable for rejection. Details regarding, the payment of fee for the filing an application for advance ruling is also clarified vide Circular No. 25/25/2017-GST by GOI, Ministry of finance, Department of Revenue Central Board of Excise and Customs, GST Policy Wing, New Delhi dated 21st December, 2017 wherein, in point no. 4 mentioned that the applicant can make the payment of the fee of Rs. 5000/- each under CGST and the respective SGST ACT. In the inst
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