2024-VIL-168-AAR
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SGST Advance Ruling Authority

GST – Rajasthan AAR - Construction of immovable property, Capitalized expenses, Introduction of new tax structure for Real Estate projects – GST applicability and eligibility of input tax credit - Appellant is engaged in supplying services of construction of affordable and other than affordable residential apartments, non-affordable housing and commercial apartments under Real Estate Project (REP) – applicable rate of GST on supply of affordable and non-affordable apartments under REP – HELD - the services of construction of affordable and other than affordable apartments under REP provided by the applicant fall within the description of services specified in serial no.(ic), (id) and (if) of Notification No. 3/2019-Central Tax (Rate), dated 29-3-2019 and accordingly the tax rates as prescribed in the said entries shall be applicable to the said services supplied by the applicant - the applicant is liable to pay GST at the rate of 1.5% for construction of affordable residential apartments under Real Estate Project (REP) as per entry at Item (ic) and at the rate of 7.5% for construction of residential apartments other than affordable residential apartments under REP as per entry at Item No. (id) of Notification No. 3/2019-Central Tax (Rate), dated 29-3-2019, subject to the conditions prescribed under the respective entries and 18% GST in respect of the services of construction of complex, building, civil structure or a part including commercial apartments (shops, offices, godowns etc.) as per entry at item No. (if) of Notification No. 3/2019-Central Tax (Rate), dated 29-3-2019 subject to the conditions prescribed under the respective entries – Ordered accordingly - Whether the applicant can supply of Affordable residential apartments and residential apartments under REP conjointly – HELD - the notification bifurcates affordable and non-affordable apartments by area and gross amount charge for the apartment. There appears no bar for a promoter to supply affordable residential apartments and residential apartments conjointly. The only thing is that the taxpayer has to pay the tax according to the size and gross amount charge for the apartment subject to the condition mentioned in the Notification No. CT(Rate) 03/2019 dated 29th March 2019 - Section 16 and Section 17(5)(d) of the CGST Act, 2017 - Eligibility of input tax credit on construction of commercial apartments in a Real Estate Project (REP) – HELD - the applicant is not eligible for ITC for goods or services received for construction of commercial apartments in a Real Estate Project (REP) on its own account, as per the provisions of Section 17(5)(d) of the CGST Act, 2017, which denies ITC in respect of goods or services received for construction of an immovable property (other than plant and machinery) on the taxable person's own account, even if used in the course or furtherance of business.
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