2025-VIL-62-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Construction Services, Real Estate Project, Transfer of Ownership, Leasing, Maintenance Charges - Applicant intends to obtain land from West Bengal Housing Infrastructure Development Corporation Ltd. (WBHIDCO) on a 99-year lease to set up a Hotel-cum-Shopping and Multiplex under the principal use of Assembly-Mercantile Retail. The applicant also has permission to construct certain residential flats. The applicant plans to either charge a lump-sum payment or periodic payments for the constructed units and also charge monthly/annual maintenance fees to the prospective clients - Whether the applicant is liable for GST on its construction work for the prospective clients - the applicable HSN code and GST rate on construction service – HELD - The applicant's project falls under the purview of a Real Estate Project (REP) as defined under the Real Estate (Regulation and Development) Act, 2016. Since the applicant is not permitted to sub-lease the land or any part thereof, and can only sub-lease/assign the constructed building or part thereof, the condition of "intended for sale to a buyer" as per the GST Notification No. 11/2017-CT(Rate) would not be applicable - The supply of construction services by the applicant to the prospective clients, whether through a lump-sum payment or periodic payments, would be liable to GST. The applicable SAC (Service Accounting Code) is 9954 (Construction Services) and the applicable GST rate is 18%. The applicant is eligible for a deduction of one-third of the total consideration as attributable to the land portion – Ordered accordingly - Whether the applicant is eligible for any exemption under the Accommodation Services category as per Notification No. 12/2017 – HELD - The leasing out of the constructed property on the leased land does not fall under the category of "Accommodation Service" as defined in Notification No. 12/2017. Therefore, the applicant is not eligible for any exemption under the Accommodation Services category - Whether GST is payable on the monthly/annual maintenance charges, and if so, what would be the applicable HSN code and GST rate – HELD - GST is payable on the monthly/annual maintenance charges as per the entry in Sl. No. 33 of Notification No. 11/2017. The applicable SAC code is 9995 (Services of membership organizations), and the applicable GST rate is 18%.
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